‘Irregularities in ORR cost ₹350 crore to HMDA’

June 22, 2017 10:55 pm | Updated 10:57 pm IST - HYDERABAD

The Outer Ring Road project has got embroiled in yet another controversy, with the CPI(M) Greater Hyderabad Central City Committee alleging irregularities to the tune of Rs.350 crore, by way of payments to contractors for works not completed.

Sharing the information obtained through RTI at a press conference here on Thursday, committee secretary M. Srinivas alleged that many works which ought to have been done as part of the project were not yet completed, even while the payments were made.

The works yet to be done include Highway Traffic Management System (HTMS), construction of Toll Administrative Buildings, construction of toll plazas, and installation of noise barriers.

Contract for the 158-km eight-lane road was handed over to various contractors in 13 packages for the estimated cost of ₹6,700 crore. As per the agreement, the contractors should be paid only for the works they completed, according to the revised agreement value. However, Mr.Srinivas alleged, payments had been made for unfinished works also.

Besides, fresh tenders were called for left-over works, for which payments would have have to be made again. The HMDA had incurred a loss of ₹350 crore because of this, he said

A query to HMDA under RTI, on whether the aforementioned four works had been been completed, got a reply in the negative. Still, certificates of completion were issued to implementing agencies, and payments made, Mr.Srinivas said.

Mr. Srinivas alleged that the commitment charges imposed by the JICA on HMDA for delay in project completion amounted to ₹37 crore, which was borne by the urban body instead of being transferred to the contractors. He also questioned the deadline of 30 months extending to eight years, and demanded an inquiry into the whole project.

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