Cost escalation of projects

Developmental projects in our State floated either by the Centre or the State are seldom completed on scheduled time. Many reasons are assigned.  Some of the difficulties in timely implementation of the projects could be overcome with little imagination and alacrity on the part of operatives on the ground. We do understand some of the physical disadvantages dogging a number of major projects, which need to be taken into account at the time of giving final shape to the project blue print.
But the cumulative result of delaying the implementation of projects is steep escalation that would lead to the suspension of work on some vital projects unless financial support is made available from some source.  This discouraging aspect is to be expressively felt in the prestigious Prime Minister’s Reconstruction Programme for J&K State. In November 2004, the then Prime Minister Dr. Manmohan Singh paid his first formal visit to Kashmir where he announced that the Centre would provide rupees 24,467 crore for launching PMRP for J&K. Under this plan as many as 67 projects/schemes in four areas covering 11 sectors of economy were cleared for launching within ten years. The present assessment reveals that only 34 (a little over 50 per cent) projects have been completed so far even as the Re-construction Plan was due to complete 10 years in the next few months. Some of the remaining projects are either underway or have been suspended for want of funds. According to knowledgeable sources cost escalation of PMRP will jump to 35.000 crore rupees which means an increase of 11,000 crore rupees.
Some of the approved projects were to be undertaken by the Centre while others were either implemented by the State or through joint undertaking with the Centre. The hydro-electric power generating projects were to be included in the Central sector. National Hydro-electric Power Corporation is the agency through which power generating task is undertaken in the State. Actually, it is in the sector of power generation where cost escalation has been the highest. We would have very much liked that greater attention had been focused on power generation and whatever small or big projects had been identified should have been completed within the time frame.  This has not happened and now we shall have to pay through our nose. In June this year, the term of the works undertaken in State under PMRP would have ended, and the Centre was not obliged to financially support the floated projects beyond that date. But the new Government at the centre headed by Narendra Modi has accorded sanction to extending the continuation of PMRP sponsorship in the J&K for one more year.  It has been done with the intention that the State would be able to bring as many more projects to completion within the stipulated time of one year as can be possible. In other words it means that there will be no paucity of funds for the projects that are either half way or need to be revived. The Centre has also agreed to extend financial support to projects undertaken by the State under the PMRP and, in addition to that, it has also agreed to speed up power generating projects no matter whatever the cost escalation.
We appreciate the liberal attitude of the Centre in regard to giving as much support to the State as it can so that economic development of the State is not arrested or suspended. The State Government should recognize the goodwill gesture shown by the centre. But at the same time we would like to say a word of caution to the State Government. A culture is developing in the State administrative system that reduces the importance of completing various projects on time. This is not a healthy trend and needs to be arrested. How can our state move forward and raise the standard of the people if more than half of the projects recommended and supported by the Centre are not completed in time. State  Government should order research in the causes of long delays in completing major and minor projects and invite suggestions to overcome the bottlenecks. We have been repeatedly saying that such a study is urgently needed. It needs to be found out whether there is shortage of skilled and unskilled labour or whether there are serious problems with the transportation of raw material to project sites or whether there is the endemic problem of land acquisition etc.  These matters need full investigation and solution as part of the mechanism devised for completing projects on.

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