CAG flags 17-yr delay, cost overrun in Ranchi civic works

This CAG report stated that it contained significant results of audits of departments of the Jharkhand government under General, Social and Economic sectors, including state public sector enterprises. “The instances mentioned in this report are among those which came to notice in the course of test audit for the period 2020-21, as well as those which came to notice in earlier years but could not be reported in previous Audit Reports,” the CAG noted.

The sewerage and drainage project in the state capital, initiated in June 2005, could not be completed in more than 17 years until August 2022. The deadline was extended first from September 2017 to March 2019, and then to January 2023, “defeating the primary objective of the project”, the report noted. “The Department also awarded the work to an inexperienced and ineligible contractor, in violation of tender conditions, which worsened the project woes,” the audit report noted.

The report stated that consultancy charges amounting to Rs 16.04 crore, paid for preparation of the detailed project report (DPR) by the consultant, proved “wasteful” since the DPR “did not serve the intended purpose”, as a fresh survey had to be conducted to “work out new alignments (with new estimates)”. The DPR has also not been used for taking up any work in the remaining three zones, and the tender for fresh survey/updation of the DPR was under process, it stated.

The CAG report said Ranchi Municipal Corporation had issued a tender for construction of drainage and sewerage, but the contractor failed to complete it. It said the contractor also submitted “forged and fabricated documents” to qualify for the tender.

The CAG reported: “The tender for the project (construction of sewer and drainage) [was] extended favour to the contractor [Joint Venture of Jyoti Build Tech Pvt. Ltd. (Lead Partner) and Vibhor Vaibhav Private Limited]. The lead partner of the JV contractor did not have the requisite experience and financial capacity to meet the tender eligibility conditions and had submitted forged and fabricated documents to qualify for the tender.”

The CAG reported that during the execution of work, the contractor failed to provide the required manpower and machinery at the work site, made slow progress and stopped the work despite grant of time extension twice.

The civic body terminated the contract in October 2019.

The report also highlighted that the contractor was paid mobilisation advance at the rate of 15 per cent against the provision of 5 per cent, thereby resulting in “excess payment of Rs 35.93 crore”.