Navi Mum infra: CAG strictures on losses due to procedural lapses

The Comptroller and Auditor General of India (CAG), in a report, has objected to several decisions on infrastructure works in Navi Mumbai taken during the tenure

The Comptroller and Auditor General of India (CAG), in a report, has objected to several decisions on infrastructure works in Navi Mumbai taken during the tenure of the Devendra Fadnavis-led Bharatiya Janata Party (BJP) government. The draft report, which reportedly objected to work worth ₹1,101 crore in ₹9,000-crore projects, was discussed in the state cabinet meeting on Thursday. It is yet to be tabled in the legislature. Fadnavis was not available for his comment.

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In its report on state’s public undertakings for the year ending March 31, 2018, the CAG has passed several strictures on lapses related to three major infrastructure projects – Navi Mumbai Metro Railway (NMMR), Nerul-Uran Railway (NUR) and Navi Mumbai International Airport (NMIA) undertaken by the City and Industrial Development Corporation (Cidco). The planning agency comes under the state urban development department.

The report has pointed out several violations by Cidco while allotting tenders which led to losses to the state exchequer, said insiders.

“In its report, CAG has found that Cidco has not recovered compensation of over ₹185 crore from 22 contractors for delay in completing works related to Navi Mumbai Metro Railway project worth ₹4,759 crore. In another case, it has found that Cidco violated contract conditions by giving over ₹25 crore as advance to a contractor in a ₹1,328-crore work under the NMMR project,” said a minister, on condition of anonymity.

“In the Navi Mumbai International Airport (NMIA) project, CAG also found that in three contracts, worth ₹2,033 crore, related to land development work, the contractors demolished a hill and used its rock for levelling the ground, but showed ₹22 crore on material expenses. In another case, works worth over ₹800 crore were allotted to six inexperienced contractors. The additional works worth over ₹69 crore were allotted to 10 existing contractors without calling for fresh tenders. The allotment process was also not transparent, the CAG has remarked,” he added.

“Cidco was found to have violated the prescribed norms for calling tenders of development projects. No advertisement for global tenders for 16 works, each worth over ₹50 crore, was published in any international newspaper. This includes works for the Navi Mumbai airport project,” said another minister.

“CAG, in its report, has said that while taking up infrastructure development works, Cidco has not done systematic and comprehensive planning. There was no long, mid- and short-term planning. The phase I of Nerul-Uran Railway (NUR) was completely delayed from December 2015 to November 2018, as Cidco didn’t appoint an adviser for the project. In May 2016, it has to cancel a work to construct a railway over bridge (ROB) in Dronagiri after spending ₹67 lakh. The ROB was planned to avoid a gas pipeline,” added the minister.

An aide of the former chief minister said the CAG observations were related to procedural lapses and not corruption. He also said the work actually began before 2014 when the Congress-NCP government ruled the state.

Former finance minister and senior BJP leader Sudhir Mungantiwar said the report is yet to be tabled in the state Assembly. “I will be able to comment on it only after going through it. The previous BJP-Shiv Sena was very transparent. Sometimes CAG passes strictures as related documents are not made available by the department concerned. It withdraws those strictures after receiving going through the documents, ,” Mungantiwar told HT.