The latest report on project implementation released by Ministry of Statistics & Programme Implementation (MOSPI) shows that projects under the power ministry have seen total cost escalation of 44 per cent.
The latest report gives the position as of April 1, 2020. The report takes into account projects implemented by Central public sector enterprises. The projects considered are only those that have a cost of at least Rs.150 crore.
The report shows that there are 26 projects (meeting the above criteria) under the power ministry. The aggregate original (or latest approved) project cost of these projects stood at Rs.159,921 crore. The total cost now anticipated was Rs.230,763 crore, implying a cost escalation of slightly over 44 per cent.
The CPSEs under the power ministry to which these 26 projects severally belong are: NTPC, NHPC, North Eastern Electric Power Corporation (NEEPCO), Power Grid Corporation of India and THDC India Ltd. It may be mentioned that NTPC now has majority equity stake in NEEPCO.
Out of these 26 cost escalation-affected projects, 17 were power generation projects while eight related to power transmission. The remaining one project pertained to coal mining and was owned by NTPC. Out of the 17 power generation projects, seven were hydropower projects while the rest were thermal power-related.
It may be mentioned that nuclear power projects also feature in the overall list of delayed CPSE projects. However, nuclear power falls under the “Department of Atomic Energy” and not the power ministry.
In terms of project implementing agencies, NTPC had the dubious distinction of having the maximum number of projects with cost escalation. At 14, this CPSE accounted for over half of the total number of cost-escalation projects within the power ministry. PGCIL, with eight projects, came next in order. NHPC had two such projects while NEEPCO and THDC India had one each.
Hydropower affected the most
The MOSPI report also gives the top five projects (in each ministry) in terms of highest cost escalation. There is a similar presentation with respect to time overrun. It is interesting to note that for the power ministry, four hydropower projects feature in the top-five with respect to both cost and time overrun. These projects are:
| Project | Promoter | DOA** | Project Cost (Rs. crore) | Scheduled Completion | |||||
| Original | Revised | Overrun | Original | Revised | Overrun (months) | ||||
| Subansiri Lower HEP (2000 MW, ARU)* | NHPC | Sep-03 | 6,285 | 19,496 | 13,211 | Sep-10 | Aug-23 | 155 | |
| Barh STPP (1980 MW, BIH) | NTPC | Feb-05 | 8,693 | 21,312 | 12,619 | Oct-11 | Aug-21 | 118 | |
| Parbati HEP (800 MW, HIM) | NHPC | Sep-02 | 3,920 | 9,997 | 6,078 | Sep-09 | Dec-21 | 147 | |
| Kameng HEP (600 MW, ARU)*** | NEEPCO | Dec-04 | 2,497 | 7,927 | 5,430 | Dec-09 | Jun-20 | 126 | |
| *Located on Assam-Arunachal Pradesh border; **Date of Approval; ***Since commissioned | |||||||||
It may be noted that the Kameng hydropower projects was commissioned in June 2020. The information presented above is as per the report that shows status as of April 1, 2020.
