Will the Minister of EXTERNAL AFFAIRS be pleased to state :

(a) whether the mega projects being executed by India in the neighbouring countries are suffering from cost and time overruns;
(b) if so, the details thereof including the names of the countries where these projects are being executed and the cost of the projects;
(c) the initial time schedule for their completion; and
(d) the steps taken by the Government for timely completion of these projects?

ANSWER THE MINISTER OF EXTERNAL AFFAIRS (SHRI S. M. KRISHNA)

(a) India undertakes several development projects in our neighbouring countries. Non-plan projects exceeding or equal to Rs.300 crores and plan projects exceeding or equal to Rs.150 crores are classified as Mega projects. All efforts are made to ensure timely completion of such projects. However, in a few cases, due to unforeseen circumstances, there have been cost and time overruns.
(b) to (d) Details are annexed.

Annexure

Afghanistan

(i) Salma Dam Project: India is reconstructing the Salma Dam Project in Herat province of Afghanistan. Water and Power Consultancy Services (India) Ltd. (WAPCOS) is executing agency of the project, which will provide 42 MW of power, in addition to irrigation, to Herat province. The original cost of the project approved by the Cabinet in Nov 2004 was Rs. 351.87 crore. M/s WAPCOS submitted a revised cost estimate of Rs. 498.93 crore against the approved cost of Rs. 351.87 crore because of increase in cost of labour, fuel, cement, steel and other inputs ranging from 50% to 95% for civil works and 36% to 136% for electro-mechanical works due to unstable economic & security situation in Afghanistan. The proposal was recommended by Committee for Non-plan Expenditure (CNE) but could not be taken up for approval of the Cabinet as in the mean time WAPCOS had indicated a further cost escalation due to non-availability of dam fill(shell) material, meant to be sourced originally from the river bed, leading to the need for explosives material for rock-blasting, additional security costs, damage caused by flood in April, 2007 and further increase in the cost of imports. A revised cost estimates to the tune of Rs. 800.85 crore plus Rs. 54.01 crore as escalation cost upto December, 2010, recommended by CNE, is being sent to Cabinet for approval. The project is expected to be completed by December, 2010.

The Project was to be completed within a period of 48 months. The preconstruction activity took 12 months against 6 months. The original completion schedule of Salma Dam Power Project was December, 2008. The revised time period projected by M/s WAPCOS was 61 months including 12 months pre construction and 49 months of construction period ending December, 2009. The completion schedule has been further revised by M/s WAPCOS up to December, 2010.

(ii) Construction of Afghan Parliament Building: With a view to make India’s contribution towards Afghanistan’s democracy, the work in respect of construction of Afghan Parliament Building was taken up. Original construction cost thereof was Rs. 296.45 crore. It was further revised to Rs. 337.58 crore. However, approval of the Cabinet was obtained on 6th November, 2008 for a revised cost estimates of Rs. 710 crore. The wide difference between estimated costs and actual bids received are on account of the peculiar and extraordinary conditions in Afghanistan and different threat perceptions of tendering parties.

The original completion schedule of Afghan Parliament Building Project is December, 2011.

The Ministry is monitoring all the ongoing projects closely and has set up Inter-Ministerial Project Review Committee for ensuring timely completion of the project as well as to avoid cost overruns.

Myanmar The total cost of the Kaladan Multi-Modal Transit Transport Facility approved by Cabinet is Rs. 535 Crores, and to be funded by India with a timeline of five years from the date of the signing of the agreement. The Framework Agreement and Protocols were signed in April, 2008. However, because of the necessary updation of 2003 Detailed Project Report (DPR) and the subsequent change in alignment of the Inland Waterways Transport (IWT) and the road components, variation of cost is expected against the approved cost viz Rs. 535 Crore. The execution of the IWT component is as per schedule with a marginal increase in the cost.

Initially, the project had to be completed by 2013. However, because of variation in the alignment of the road component, the schedule and cost of the road is expected to be revised accordingly.

To expedite the timely completion of the project, the Framework Agreement on the implementation of the project envisages appointment of a Multi-Sectoral group comprising of officials from Government of India and Myanmar.

http://www.mea.gov.in/mystart.php?id=220215953.

Lok Sabha