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New Delhi, June 20 (PTI) The Planning Commission has sought a high-level review to assess the present status of Railway''s ambitious dedicated freight corridor project fearing significant time and cost overrun due to its tardy progress. The project, being monitored by the Prime Minister''s Office, was originally envisaged to be completed at a cost of Rs 28,181 crore but the Commission fears it could surpass Rs 80,000 crore due to poor project management. "From present indication, it appears that the completed cost of this project may exceed Rs 80,000 crore and the corporation seems to expect that this entire amount will be provided through the Railway Budget," Deputy Chairman of Planning Commission Montek Singh Ahluwalia said. Given its progress, he asserted that it would be "useful to conduct a high-level review and assess the current status, which may also be placed before the Cabinet Committee on Infrastructure." In a letter to Railway Minister Mamata Banerjee he reminded her of the promise made in her Railway Budget speech to revamp the Dedicated Freight Corridor Corporation at the earliest, which has, however, not taken place as yet. "We have also been quite concerned about the way this project has moved so far," Ahluwalia said in his letter. Sources in the Railway Ministry disclosed that by March 2010, as per stipulated construction schedule, more than one-third of the time schedule for completion of the project would have been over but the progress on the ground is less than five per cent of the works. The project, considered critical for the economic prosperity of the country, proposed to connect Ludhiana to Dankuni in the Eastern corridor and Tughlakabad to Mumbai in the Western corridor. Ahluwalia said the two contracts awarded more than a year ago also seem to be progressing slowly and would suffer significant time and cost overrun. Seeking to revamp the corporation as promised by the Railway Minister for smooth and timely execution of the project, he desired to have a financial commissioner on its board given the exceptionally large financial implication of the project. Further, he has suggested appointment of independent directors to the board "to lend greater quality to the deliberation". Japan International Cooperation Agency and World Bank have assured funding assistance to the project.
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