Arun Singh
JAMMU, Aug 23: Already lagging behind in executing many development works within stipulated time frame, crores of rupees of taxpayers' are being wasted by Jammu and Kashmir Project Construction Corporation (JKPCC) Ltd under the garb of revised cost policy in most of its projects resulting into huge cost escalation. If sources are to be believed, JKPCC is weakening the economy of state through its functioning by revising DPRs to escalate its cost. Generally when a project spills over its stipulated time frame, which is usually 3 years, there is an escalation in cost and executing agencies prepare revised Detailed Project Reports (DPRs), they said. "Due to revision of DPRs, the cost escalation goes up to manifolds from its original cost while in some cases the cost has been observed increased up to more than 200% from original cost," they said further adding that in many cases the time period for completion of projects has lapsed and still under execution while some of them were started seven years ago.
"Interestingly JKPCC has not earned maximum of its projects through competitive bidding," They said that generally JKPCC charges around 15% in the form of service charges per project but there is probability of cost escalation in 90% of cases. Since projects usually get delayed in J&K due to land disputes, delay in shifting of utilities, non accord of Administrative Approval (AA) and non-availability of funds in time and inclusion of new items in projects during execution stage but after revising project cost, JKPCC manages to earn much more than what it initially proposes to charge. For instances, construction of Sub District Hospital Khour had started 5 years ago at the original cost of Rs 3.98 crore but after lapse of its execution period the cost was revised to Rs 12.57 crore approximately 215% cost escalation. Likewise construction of District Hospital Rajouri started 7 years ago at the original cost of Rs 18.07 crore and later DPR revised to Rs 46.40 crore at 157% cost escalation.
Construction of IMPARD complex at Jammu is being executed since 8 years was started at Rs 6.75 crore then revised Rs 10.64 (62% escalation). Construction of Polytechnic at Samba started at Rs 13 crore 3 years ago then cost revised to Rs 18.56, 42%. |
