PAC flays cost overruns in B'lore-Hassan BG project

The construction of the new 166 km long rail track between  Bangalore and Hassan through Shravanabelgola has seen a mammoth cost escalation- from Rs 412.91 crore in 1996-97 to Rs 913 crore as on March 31, 2010. This is more than double the sanctioned amount for the execution of the project.

“Railway Ministry should make proper and realistic project assessment and lay down firm procedures for project execution to avoid time and cost overruns,” PAC has advised the Railways in its report. The committee has also strongly recommended that the reasons for the cost escalation owing to faulty planning and implementation be enquired and action taken to fix responsibility to prevent their recurrence.

The PAC has also found inordinate delay on the part of the Railways to submit action taken reports on its audit observations and recommended that the national transporter put in place a more effective monitoring system and ensure that the action taken notes are furnished well within the period of four months.