Southern States - Kerala-Thiruvananthapuram   

Muneer denies excess expenditure under WB project

By Our Special Correspondent

THIRUVANANTHAPURAM JULY 15. The Public Works Minister, M. K. Muneer, said in the Assembly on Tuesday that the Comptroller and Auditor General (CAG) of India had reported an excess expenditure of Rs. 388.10 crores under the World Bank-aided Kerala State Transport Project because the CAG did not have a clear understanding of the expenditure.

The Minister was replying to the allegations made by the Opposition during the debate on the demand for grants for public works.

The CAG had said in its report for year ending 2002 that the adoption of rates recommended by consultants for improvement works of the National Highway was substantially above the rates fixed by the Ministry of Road Transport and Highways and it had resulted in extra expenditure.

Mr. Muneer said that the expenditure had actually not been incurred as the Centre had allocated only Rs. 60 crores to the State so far under the project.

He said that the consultancy contract for the project had gone to a foreign company despite a lower bid by an Indian company because the technical bid by the former was rated high.

The Minister refuted allegations that he had misused his position to further the prospects of the television company, India Vision, of which he is the chairman. He was the chairman and managing director of the company. He had resigned the executive post of managing director before joining the Ministry.

Referring to the allegations that private parties were allowed to erect gantries without paying rents, the Minister said that the Government was willing to consider introduction of rents.

He said that the Centre was considering the development of the National Highway between Cherthala and Parassala for four-lane traffic.

The work would include construction of a bypass road in Kollam. Tenders of work for the Alappuzha bypass would be awarded shortly.

He said that a transparent Internet-based system was being developed in the Public Works Department that would enable people to know everything about the award of tenders and projects. Steps were being taken to develop the capital city in a big way with flyovers and underpasses.

The Government, he said, had cleared arrears totalling Rs. 1400 crores payable to public works contractors. This had resulted in quotations below the estimated costs as contractors could expect early payments.

After the Minister's reply, the House passed the demand totalling Rs. 485.27 crores.

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