Pot calling the kettle black? GOI has a grouse over project costs overrun????wow!! ...The MEA has listed several grouses it has, beginning with huge cost overruns in hydel projects. "The ministry has been repeatedly urging the project authorities to make a realistic assessment of their minimum funding requirements. However, the project authorities continue to adopt somewhat casual attitude and make inflated projections without doing due diligence and meticulous financial management." For instance, for the Punatsangchhu-I project, the revised cost has gone up to Rs 9,396 crore compared to the sanctioned cost of Rs 3,514 crore in 2006. The ministry has also sought to explain how the Bhutanese appear to be indulging in construction of "overcapacity/over-designed infrastructure and other facilities for welfare and employing more number of manpower than essential". It has now asked the power ministry to assess whether expenditure on construction of residential quarters as well as welfare and environmental protection for the hydel projects would have long term implications on the power tariff India will have to pay Bhutan...
Posted on: Thu, 11 Jul 2013 08:47:21 +0000
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