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CAG finds undue benefit of Rs 5.47 crore in flyover construction in Jammu & Srinagar
1/14/2022 11:20:22 PM

Early Times Report

Jammu, Jan 14: The CAG has targeted the Jammu and Kashmir administration over the faulty execution of work at flyovers at twin capitals- Jammu and Srinagar- in the erstwhile state.
The report has maintained that in order to decongest traffic on road junctions and improve connectivity to different areas, it was proposed in January 2010 and May 2010 to construct two four-lane flyovers, one from Bikram Chowk to Women College at Jammu and another from Jehangir Chowk to Rambagh Natipora at Srinagar at an estimated cost of Rs 67.31 crore and Rs 219.26 crore, respectively. The works were allotted in April 2013 to Contractors namely M/s Valecha Engineering Ltd Mumbai and M/s Simplex Infrastructure Pvt. Ltd., Mumbai at a cost of Rs 64.30 crore and Rs 200.74 crore respectively with period of completion as 36 months. The sub-project Bikram Chowk flyover was completed in May 2017 at a cost of Rs 84.84 crore.
As per the information furnished in October 2020 by JKERA, Jehangir Chowk flyover had also been completed in September 2020 after incurring an expenditure of Rs 379.67 crore. The contract for construction of Jehangir Chowk flyover at Srinagar was allotted in April 2013 at a total cost of Rs 200.74 crore and was stipulated to be completed by April 2016. The item wise rates allotted under the contract were applicable throughout the period of execution of the project without any provision for revision of unit rates.
As per Clause 13.8 of the terms and condition of contract, the contractor was entitled to payment of price adjustment on account of rise in cost of labour and goods and an amount of Rs 5.47 crore was paid to the contractor on this account for the period July 2016 to May 2019. Audit however, noticed in November 2019 that rates of various items of works, allotted under the contract, were revised in July 2016 by JKERA on the basis of prevailing market rates of material and labour and the works executed beyond July 2016 were paid to the contractor at revised rates. Revision of rates, in addition to payment of price adjustments resulted in inadmissible and extra payment of Rs 29.63 crore to the contractor.
Audit has noticed that the as price adjustment amounting to Rs 5.47 crore was already paid to the contractor on account of rise in cost of labour and goods and revision of rates in the instant case had resulted in undue benefit to the contractor, amounting to Rs 5.47 crore.
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