NEW DELHI: The Comptroller and Auditor General (CAG) has found fault with the implementation of Phase I of the Centre’s flagship Bharatmala Pariyojana, the highways development programme while reviewing several projects awarded under the scheme.
In its latest report, the CAG has observed that ineligible bidders were selected and bids were awarded on the basis of faulty detailed project reports (DPRs) or without DPRs in violation of prescribed processes of the tendering.
It further pointed out that DPRs prepared by consultants were not appraised with due diligence by the competent authority before the approval of projects. It has recommended that the Ministry of Road Transport and Highways (MoRTH) consider establishing a DPR Cell in the implementing agencies to create institutionalized in-house expertise for reviewing the project reports and road designs.
In October 2017, the Cabinet Committee on Economic Affairs (CCEA) approved Bharatmala Pariyojana for the development of 74,942 km of national highways. The primary focus of the programme was on optimising the efficiency of the movement of freight and people across the country.
A total length of 34,800 km including the Residual National Highways Development Program (NHDP) length of 10,000 km, was approved under Phase I of Bharatmala Pariyojana (BPP-I), for development up to September 2022, at an investment outlay of Rs 5,35,000 crore.
The CAG report tabled in Parliament last week also found that fund management, planning and monitoring of the projects were not up to the mark.
“Due to wrong computation of price-adjustment formula in case of EPC (Engineering, Procurement and Construction) HAM (Hybrid Annuity Model) projects, contractors/concessionaires were paid excess price adjustments to the tune of Rs 99.16 crore. MoRTH should review the interpretation of the price adjustment formula in HAM projects so as to avoid undue benefit to the concessionaire. Poor monitoring of escrow accounts by NHAI resulted in the diversion of funds to the tune of Rs 3,598.52 crore from escrow accounts by concessionaires,” the report of the federal assessor reads.
HAM is a combination of two models --EPC and BOT--Annuity (Build, Operate, Transfer) model. Under the EPC model, private entities build roads and have no role in its ownership, toll collection or maintenance.