Sanjeev Pargal
JAMMU, June 30: A massive jump has been witnessed in cost escalation of projects undertaken in hands especially in Central sector in Prime Minister’s Re-construction Plan (PMRP), which would complete decade of its launch in the month of November this year.
Official sources told the Excelsior that cost of the PMRP, which was Rs 24,467 crores when it was launched in November 2004 by the then Prime Minister Dr Manmohan Singh as the head of UPA-I, has crossed Rs 35,000 crores and was roughly pegged around Rs 35,450 crores now.
“The cost was likely to go up as some of the projects undertaken in the Central sector were hydroelectric power projects and their cost has jumped manifold due to delay,’’ they said.
The PMRP would complete 10 years of its launch in November this year.
Out of a total of 67 projects/ schemes in four areas covering 11 sectors of economy, only 34 (a little over 50 per cent) have been completed so far even as the Re-construction Plan was due to complete 10 years in the next few months.
Dr Singh as head of UPA-I had announced Rs 24,467 crores worth PMRP for Jammu and Kashmir during his first two days visit to the State after taking over as the Prime Minister of India on November 17 and 18, 2004.
According to sources, the total cost of the PMRP projects has now jumped to Rs 35,450 crores due to delay in completion of some of the projects, whose deadline for commission has also expired. The Centre has, however, decided that all projects undertaken under the PMRP in both Central and State sectors would be taken to logical conclusion and funds released for them for their timely completion.
The new Government at the Centre headed by Prime Minister Narendra Modi has already decided that the PMRP, whose extended one year term had expired on March 31, 2014, would be extended for another year and Jammu and Kashmir would get due funds for the projects identified by it under the Plan during current financial year of 2014-15.
In fact, Home Minister Rajnath Singh had recently reviewed the PMRP for Jammu and Kashmir with his Ministry officials.
The Centre has so far released Rs 7814.50 crores for Jammu and Kashmir for the PMRP projects in the State sector while Rs 600 crores were due for release during current financial year along with annual plan and Centrally Sponsored Schemes.
Justifying cost escalation of some of the projects, sources said the cost has gone up only in case of major hydro-electric power projects, which faced a lot of hurdles in execution leading to delay in the time schedule fixed for their execution. The Centre has assured the agencies executing the hydro-electric projects in the Central sector of the PMRP that they would get funding based on the cost escalation. Similar is the case for the State projects, they said.
Going by pace of some of the projects/schemes, it could still take three to four years for their completion especially the hydro-electric projects, sources said pointing out that out of a total of 67 projects/schemes started under the PMRP under both Central and State sectors, only 34 have been completed so far. Work was on in 28 other projects/schemes while in case of remaining five projects, the proposals were in the stage of finalisation.
The Centre has so far released Rs 7814.50 crores for Jammu and Kashmir under the PMRP in the State sector. In 2005-06, J&K was allocated Rs 771.72 crores while the amount had come down to Rs 539.9 and Rs 576 crores in 2006-07 and 2007-08 respectively but it again went up to Rs 1012.97 crores in 2008-09 and Rs 1200 crores each in 2009-10, 1010-11 and 2011-12. The amount again came down to Rs 700 crores in 2012-13 and Rs 600 crores in 2013-14.
The plan, which was given to the State as an economic package for raising economic infrastructure damaged during the militancy, is being implemented in two sectors—Central and State. The Central projects, mainly power generating hydro-electric projects, are being constructed by National Hydro-electric Power Corporation (NHPC) while State sector projects are being executed by different agencies.
The State amount is released in installments every year with this year’s share kept at Rs 700 crores of which the State has so far received Rs 275 crores.
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