Financial Crunch in Railways

RAILWAY PROJECTS HANGING FIRE DUE TO LACK OF FUNDS

Thirty nine new line, gauge conversion and doubling projects of Indian Railways are pending for completion for more than 15 years now. As on April 1, 2012, Railways have 347 ongoing projects having a throw forward of about Rs1.47 lakh crore.

In a statement laid before the Lok Sabha last week, Railway Minister Pawan Kumar Bansal said these projects have long gestation period owing to lack of funds. “Apart from limited availability of resources, delays in land acquisition and forestry clearances, adverse law and order condition and failure of contracts have contributed to inordinate delay in execution of projects,” Bansal said.

Out of total 39 pending projects, East Coast Railways has maximum number (five projects) of works ongoing for more than last five year.

West Central Railways is the only zone not to have any project pending for the past 15 years.

“To expedite completion of projects, a number of initiatives have been taken to generate additional resources through non budgetary measures like funding by state government and the beneficiaries, execution ofprojects through Rail Vikas Nigam Limited on special purpose vehicles,” Bansal said.

Government claimed its efforts have started returning results. At least 10 State Governments have come forward for sharing cost of 4,760 km of project. Another five projects have been taken up with participation of industry and stakeholders.