Cost Overrun

1. 1. Reasons of Cost overrun:
a) 1110- Preliminary Expenses: Due to additional requirement of GT survey, Bore logs to finalise
the location of tunnel portals and bridge piers & abutment, cost has been increased by Rs
9.98 Crs.
b) 1120- Land: Cost escalation due to delays in handing over of land by Forest Deptt. and taking
up the works of the project for about 11 years. Increase in base rate in Forest and revenue
land due to change in land rule, cost of land increased. Land for adit tunnels, approach road of
main tunnels was not considered in DE. Cost of land has increased by Rs. 414.13 Crs.
c) 1130- Structural Engineering works (Formation): In compare to DE, adit length has increased.
Due to land restriction, protection work in yard changed from DE. Due to high cutting, hillside
protection with permanent anchor with shotcrete has been considered and RE wall has been
introduced due to high filling. Due to increase in tunnel length and cavern length in Tessta
station, and price escalation, Cost has increased by Rs. 3763.76 Crs.
d) 1140- Structural Engineering works (P-way): Due the change in rail section, sleeper section
and its fitting and escalation in price, Cost has increased by Rs. 298.75 Crs. In DE, there was no
provision of BLT. Same has been considered in Re as per railway board instruction.
REASON FOR COST OVERRUN

2. e) 1150- Structural Engineering works (Bridges): After finalization of alignment, span arrangement of
bridges has changed w.r.t. DE, leading to requirement of 13 Major bridges as compared to only 2
major bridges originally. Cost of bridges has increased by Rs. 548.67 Crs.
f) 1160- Structural Engineering works (Station Building): Due to increase in no. of quarter and other
structures and considering Rangpo station as world class station and additional facilities required at
station yards as per operational requirement, cost has increased by Rs. 386.38 Crs.
g) 1180- General charges (Establishment): Due to increase in cost in above mentioned sub-head, D&G
charged has increased by Rs. 303.97 Crs.
h) 1190- General charges (other than Establishment):Due to increase in cost in above mentioned sub-
head, D&G charged has increased. Further 1% cost against Environmental related works and 0.5%
against sport development has been considered and Railway board circular which was not in DE.
Due to this cost has increased by Rs. 187.99 Crs.
i) Additional 6% of GST has been kept in RE due to change in GST rate from 12% to 18% as per Govt.
circular.
j) Escalation due to PVC @20% has been considered on the balance work.
REASON FOR COST OVERRUN (Contd..)

3. k) Provision of E&M in tunnels: As per DE, sanctioned cost for Electrical work is Rs. 90.49 Cr. In DE,
Railway Electrification work was not included. In proposed RE, revised cost is Rs. 1577.14Cr. for E&M
works and Rs.171.59 Cr. for Railway Electrification works. Proposed RE cost is Rs.1748.73 Cr. Other
than escalation, variation in this cost is Rs. 1512.67 Cr due to change in power supply arrangement,
addition of DG set, Yard Illumination, Utilities shifting work, now integrated substation is proposed for
OHE & Tunnel at Rangpo, change in nos of quarters, consideration of Tunnel ventilation for the tunnels
having length more than 4 Km or nearby 4 Km i.e. T-1, T-4,T-6,T-7, Underground Teesta Station, T-8 &
T-10, provision of scope for SCADA, firefighting and safety system in tunnel.
Railway Electrification has been included in the RE as per Railway board letter no.
2015/W1/NF/NL/Sivok-Rangpo/Pt-1 dt. 15.07.2022 .
REASON FOR COST OVERRUN (Contd..)

4. l) Provision of S&T : As per DE, sanctioned cost for S&T work is Rs. 75.48 Cr. As per proposed RE, this
amount proposed is Rs. 225.89 Cr with a variation of Rs. 150.40 Cr on account of escalation other than
price escalation. This variation is due to (i) Provision of Centralized Architecture of Electronic
Interlocking for Multiple stations for the entire section in lieu of Relay interlocking at all four stations,
(ii) Provision of IP based Tunnel communication in entire section. (iii) Provision of CCTV surveillance
system, Radio Communication, fire retardant low smoke cable, in Tunnel, (iv) Provision of
PA/Emergency call system for tunnel longer than 2 km, (v) Take off point will be from Sivok where
complete yard remodeling with shifting of entire existing Station yard 1s involved. This variation also
includes increase in GST from 12% to 18% and Rs. 16.91 Cr. against IRCON's profit.
m) Provision of Mechanical :The sanctioned DE amount for Mechanical department work is Rs. 0.28 Cr
which is increased to Rs. 93.06 Cr in the proposed RE. There is an increase of Rs. 92.79 Cr in the RE.
Provision of only M&P work has been kept which increased by Rs. 92.79 Cr in the RE as per
requirement.
REASON FOR COST OVERRUN (Contd..)