Andhra Pradesh, Telangana And Karnataka Owe Rs 9,000 Crore To Indian Railways
Andhra Pradesh, Telangana and Karnataka collectively owe the Indian Railways over Rs 9,000 crore for projects carried out in these states, according to officials familiar with the situation. Kerala and Tamil Nadu, on the other hand, have no outstanding payments, but slow land acquisition has hindered progress in those areas.
According to officials, railway projects encounter the most delays in states where there is frequent change in political leadership. Delays in the disbursement of funds, land acquisition and obtaining approvals all contribute to the sluggish pace of project execution.
A senior government official told a leading media house that significant disruptions occur when state governments alter the scope of ongoing projects following elections, often to appease local supporters without regard for consistency in policies or project timelines. This, the official emphasised, results in both time and cost overruns.
The Indian Railways is currently undertaking 459 infrastructure projects, including new lines, gauge conversion and doubling, covering a distance of approximately 46,360 kilometres with an estimated value of around Rs 7.18 lakh crore. While about 11,872 kilometres of rail lines had been completed by March 2023, the majority of the remaining projects are either in the planning, approval or construction phase.
Predicting a definitive timeline for the completion of all projects proves challenging due to the reliance on swift land acquisition and the timely contribution of funds by state governments for cost-sharing projects, the official noted.
Furthermore, instances have been noted where a state government attempts to alter the scope of a previously approved project even in the absence of a change in leadership, which the official described as tactics to delay execution.
As per officials, Andhra Pradesh still needs to disburse Rs 6,958 crore for railway projects developed on a cost-sharing basis with the Centre, while Telangana owes Rs 1,253 crore and Karnataka owes Rs 928 crore in arrears.
