Cost overrun delaying projects in Odisha

Press Trust of India Updated - June 19, 2012 at 08:54 PM.

Concerned at cost overrun of Rs 3,200 crore due to the delay in completing 27 Central sector projects in Odisha valued at over Rs 54,000 crore, the Union Minister, Mr Srikanta Jena, today asked the State Government to form a co-ordination committee for speedy implementation.

“The total original cost of these 27 projects is Rs 54,277.41 crore and the anticipated completion cost is Rs 57,448.40 crore, implying a cost over-run of Rs 3,170.99 crore,” Mr Jena, Union Minister of State for Statistics and Programme Implementation, told reporters here.

In order to ensure speedy completion of major central projects, it was essential to set up a Central Sector Project Co-ordination Committee (CSPCC) under the Chief Secretary to resolve problems being faced, he said.

Stating that there were two major ongoing projects of IOCL in Odisha, the Minister said the Paradip Refinery Project with a capacity of 15 MMTPA of crude and sanctioned cost of about Rs 30,000 crore, was taking more time due to delay in completion of peripheral work.

Scheduled to be operational by November, 2012, the project was likely to be commissioned by September, 2013, which would escalate the cost by about 2.5 per cent, he said.

Published on June 19, 2012 15:24