Delays and Mismanagement Plague Railway Project
The project, first announced in 2008, has seen significant delays and mismanagement, with the national transporter informing the Public Accounts Committee (PAC) of the issues.
Financial Expenditure vs. Project Milestones
- The project has disbursed 56.22 per cent (₹500.93 crore) of its ₹890.89 crore sanctioned estimate by January 2024.
- Despite this, the project has only achieved 29 per cent physical progress in Phase-I.
This indicates a misalignment between financial expenditure and project milestones, with major outlays on:
- Land acquisition (₹168.46 crore)
- Civil works (₹206.33 crore)
- Electrical (₹14.49 crore)
- Signalling and telecommunication (₹39.46 crore)
- Stores (₹17.94 crore)
- Design and general charges (₹52.14 crore)
- Contingencies (₹1.86 crore)
The panel highlighted the need for efficient financial management, particularly in light of audit findings on idle resources and contract extensions.
Contract Extensions and Idle Resources
- Contracts were awarded without approved designs, drawings, and clear sites, in violation of Railway Board's 2009 codal instructions.
- As a result, idle resources worth ₹7.06 crore have been wasted.
The panel also highlighted the financial losses and erosion of public trust due to:
- Awarding civil works contracts in anticipation of land availability that did not materialise.
- Delays in land acquisition and PAP resettlement.
Land Acquisition Delays
- The acquisition of the required 10,139.6 sqm of land for Phase-I has been significantly delayed.
- Only 2,656 sqm of land has been acquired and possession received as of January 2024.
The panel recommended that the railways ministry establish a dedicated land acquisition and resettlement cell, and explore alternative models of land acquisition to overcome the challenges faced in urban areas like Mumbai.