Minimal cost overruns for Kaleshwaram

Kaleshwaram project involves a huge estimated cost of over Rs 80,500 crore, and it is unlikely to face any major cost escalation, making it the only project in the country to achieve the feat.

By Author  |  Published: 11th Aug 2018  12:05 amUpdated: 13th Aug 2018  6:26 pm
Kaleshwaram
The Kaleshwaram project involves a huge estimated cost of over Rs 80,500 crore

Kaleshwaram: The fact that the massive Kaleshwaram Lift Irrigation Scheme is a one of its kind project in the country is well established. But, what many would not be aware is that the complex project, once completed, would stand out as an iconic structure not only for the scorching pace at which it is being constructed but also the fact that it would have very little cost overruns, something that is rare for projects of such magnitude.

The multi-stage, multi-package Kaleshwaram project involves a huge estimated cost of over Rs 80,500 crore, and it is unlikely to face any major cost escalation, making it the only project in the country to achieve the feat.

If at all there is any impact of inflationary trends or revision of Standard Schedule of Rates (SSRs), the escalation would be in the minimal range of 1.1 per cent to 1.2 per cent, taking the overall cost to Rs 90,000 crore or a little more by the time it is completed, a confident Irrigation Minister T Harish Rao told Telangana Today.

“We are in a position to avoid cost overruns solely because we want to give the results within three years instead of the usual 30 years that projects of such size take for completion,” he said, adding that one of the key factors that usually contribute to cost escalation in major projects is delay in implementation, which will be prevented at any cost in the case of Kaleshwaram. Explaining that cost overruns can be avoided when implementation is managed well within the estimated cost and estimated time, he said if projects take 30 years for completion, the cost would certainly go up by 100 per cent.