A Comptroller and Auditor General (CAG) report on public sector undertakings (PSU) has raised serious objections to the lack of publicity in inviting tenders for projects such as Navi Mumbai Metro Rail (NMMR) and Navi Mumbai International Airport (NMIA), which resulted in poor response, and absence of competition as only two-three offers were received against 10 tenders.
The report comes as a setback to former chief minister and Bharatiya Janata Party leader Devendra Fadnavis, who had also held the urban development portfolio. The City and Industrial Development Corporation (CIDCO) falls under the department, which is executing the two projects.
“Advertisements on 16 tenders with an estimated tender cost of ₹50 crore and above were not released in leading newspapers at the national level in violation of the guidelines. Global tenders for projects like NMMR and NMIA were not published in any international publication,” the report said.
The report further said in three contracts with a total value of ₹1,581.11 crore, the works were awarded without sufficient competition. “The contracts for land development work for packages III and IV relating to the airport were awarded M/s GPL for ₹699.44 crore at 18% above the estimated cost and M/s CSJ-GVK for ₹804.91 crore at 28.50% above the estimated cost.”
In case of NMMR, the audit said, in six cases with an estimated cost of ₹890.42 crore, the contractors did not possess the minimum prescribed value of work experience, but were awarded the contracts.
The report also highlighted the delays in the NMMR project, which was scheduled to be completed in December 2013. “The NMMR project has slowed down mainly on account of the delay in completion of station works attributed to the poor financial condition of the contractor.” The audit also said in 10 cases with a total contract value of ₹429.89 crore, the existing contractors were awarded additional works valuing ₹69.38 crore at different work sites without inviting tenders, thus violating the guidelines.
The CAG report slammed the CIDCO over payments and recoveries citing instances such as a contract valuing ₹1,328 crore regarding the NMMR project, where an excess mobilisation advance amounting to ₹25.33 crore was paid in violation of the contract condition.
In 22 contracts with a total value of ₹4,759.94 crore, the CIDCO had not recovered compensation for the delay, which amounts to ₹185.97 crore, even though the delay in completion of work or not achieving the milestones was attributed to the contractors.
