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Shortage of funds hits 103 rail projects: Minister`

December 10: As many as 103 railway projects that had been initiated 10 years ago could not be completed because of shortage of funds, Minister of State for Railways Kotla Jaya Surya Prakash Reddy has said.

In a written reply in the Rajya Sabha, Reddy said, "These projects had been sanctioned more than 10 years ago, ie, in 2003-04 or before, and are still under various stages of execution."

"The total anticipated cost of these 103 projects is Rs 103,980 crore against an expenditure of Rs 50,796 crore that has been incurred up to March 2013 and a total of Rs 53,183 crore is required to complete these works," the minister added.

He said as many as 368 railway projects, covering a length of 36,387 km at a cost of Rs 243,269 crore, are under various stages of execution, but limited availability of resources and a throw-forward of on-going projects have led to thin deployment of funds, thereby prolonging the period of execution.

"Apart from funds constraints, delays in land acquisition and forestry clearances, adverse law and order condition, failure of contracts, technological changes, improved standards of construction and other changes in the scope of work due to alterations in traffic patterns etc, which could not be anticipated at the time of sanctioning of the said projects, are also contributing to the delay," Reddy added.

Meanwhile, to expedite these projects, a number of initiatives have been taken by railways to generate additional resources through non-budgetary measures like funding by state governments and other beneficiaries, execution of projects through Rail Vikas Nigam Ltd on an SPV basis, he said.

In addition, to reduce delays on account of land acquisition, security issues and forestry clearances, meetings with state officials at various levels are being held from time to time. 

"Field units have been empowered further and the contract conditions have been modified to bring efficiency into contract managements," the minister said.