DJB rejects allegations of inflated cost for Nangloi plant revamp | delhi | Hindustan Times
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DJB rejects allegations of inflated cost for Nangloi plant revamp

delhi Updated: Nov 01, 2012 23:22 IST
HT Correspondent
HT Correspondent
Hindustan Times
allegations of inflated work order

Stung by allegations of inflated work order for the total revamp of the water supply system at Nangloi under public private partnership (PPP) mode, the Delhi Jal Board (DJB) on Thursday sought to clarify the air by releasing details about the project.

“The total estimated project cost is Rs. 652.32 crore, which includes Rs. 193.78 crore for road restoration. The estimated project cost for the water supply component — Rs. 458.54 crore — is to be funded in the 70:30 ratio between DJB and the operator," the Delhi Jal Board clarified in a statement.

Comparing similar work in Patna, the Citizens Front for Water Democracy and Water Workers Alliance, had earlier this week alleged that capital cost of the Bihar capital’s water supply project was only Rs. 476.94 crore while that for Nangloi was Rs. 652.32 crore.

The Operations and Maintenance (O&M) cost for Patna for 11 years was Rs. 548.83 crore while that for Nangloi worked out to Rs. 1,552.32 crore for 14 years, they had alleged.

Explaining how there can be no comparison between Patna and Delhi, the DJB said Patna's project area is 99 sq kms compared to 129 sq kms at Nangloi. While Patna needs 700km of new pipelines, almost half of 1,300 km of new pipelines are needed in Nangloi.

"The cost of the entire project has been worked out on the basis of government-approved Delhi Schedule of Rates," the statement said adding, "The DJB carried out a competitive, transparent and integrated bidding process wherein the bidders were judged on their technical and financial capacity followed by evaluation of financial bids for the pre-qualified bidders."

The water utility also said: "The tariff applicable to the consumers in the project area would be the same as for rest of Delhi."