Projects cost escalated to more than 300 percent
Danish Raza | October 23, 2010
The amount of money spent on commonwealth games (CWG) projects in Delhi University (DU) was more than three times that the initial estimated budget.
The information obtained by Delhi based RTI activist Gopal Prasad shows that more than Rs 300 crore was spent on projects, which were intially estimated to cost no more than Rs 100 crores.
In August 2007, the engineering department of the varsity gave a two-year contract to M/s Engineers India limited (EIL) to develop sports facilities and associated infrastructure at north campus of the university.
However, the company could not finish the work within the agreed time- limit.
Also, it sub-contracted the work to M/s Nagarjuna construction co. ltd.
In a letter dated August 8, 2009 - addressed to the pro- vice chancellor - the executive engineer of the university said “while EIL had been paid Rs 195 crore till date, the work awarded to M/s Nagarjuna construction co. ltd by EIL is amounting to Rs 254 crore.”
The executive engineer had recommended extending the contract of EIL up to July 2010.
The issue of revised estimates of CWG projects in DU was discussed in the expenditure finance committee (EFC) meeting held on June 23, 2009. The meeting saw representation from the ministry of finance, ministry of human resource development, ministry of urban development, planning commission and DU.
In the meeting, the finance secretary held that the proposals were originally prepared without taking note of many important items necessitating revision and consequent cost increases. “He said that this resulted in the estimates losing their sanctity and therefore emphasized on the need to ensure financial discipline,” read the minutes of the EFC meeting copy of which is available with Governance Now.
The committee recommended that DU should rework the estimates to cap the revised estimates at Rs 306. 41 crore, which the university eventually did.
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