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`Mismanagement cost Delhi Govt Rs 11 cr extra`

Last Updated: Thursday, June 7, 2012 - 00:31

New Delhi: Anomalies in working out project costs and irregular award of work for a road improvement project on the Outer Ring Road resulted in an over expenditure of Rs 11 crore by the Delhi government, a CAG report said on Wednesday.

The audit of the Public Works Department found that the `Corridor Improvement for Outer Ring Road from IIT Gate to NH 8 intersection` that was awarded to Afcons in 2007 was over budgeted by at least Rs 17 crore.

The tender was approved at a cost of Rs 234 crore against an estimated cost of Rs 164.83 crore, and given a variation of up to 10 per cent on estimated cost is allowed in case of an emergency, the tender should not have been accepted beyond a Rs 217.77 crore estimate. But, it was done at Rs 234 crore.

Till January 2012, Rs 167.10 crore has been paid, which resulted in excess expenditure of Rs 11.59 crore.

The report cited the CPWD Works Manual, 2003 that stipulates that a variation of not more than 10 per cent be accepted in tender rates and estimated reasonable costs considering the market condition and other factors.

However, while awarding the contract, the PWD based its estimation on faulty calculation and arrived at a justified cost much above the 10 per cent variation allowed.

"Thus, the preparation of incorrect justification statement resulted in justified amount being exaggerated by Rs 25.89 crore and due to such incorrect calculation, the tendered amount was worked out to be within five per cent of justified amount, which was actually 18 per cent above the correct justified amount," it said.

The report also found an extra expenditure of Rs 2.21 crore was incurred in a project for `construction of general pool office building, near Metcalf House` that was awarded to a contractor in 2004.

It said "illegal" rescission of a contract by the PWD resulted in extra expenditure of Rs 2.21 crore as the balance work was executed at higher rates under the new contract.

It also highlighted an extra expenditure of Rs 1.06 crore due to fixation of unreasonable rates for advertisement on Bus Queue Shelters, and an "infructuous expenditure" of Rs 1.76 crore in the absence of proper planning with assessment of actual requirement and lack of coordination among different divisions of PWD.


First Published: Thursday, June 7, 2012 - 00:02

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