CWG scam: How PWD, NDMC, DDA, DIMTS and MCD squandered crores

NEW DELHI: The amount spent for streetscaping and beautification of roads for 'aesthetics' before the Commonwealth Games could have been enough to build a new 94 km two-lane highway with paved shoulder between Delhi and Panipat. The three government agencies in the national capital spent Rs 332.45 crore for such works at an exorbitant expenditure of Rs 4.8 crore per km.

According to NHAI officials, per km cost of two-lane highway with paved shoulder is around Rs 3.5 crore. India has experienced how construction or upgradation of a national highway stretch fuels economic activities in the areas adjoining the corridor.

The Public Works Department (PWD), Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC) and Delhi Development Authority ( DDA) and DIMTS were the five agencies which carried out streetscaping and road beautification of 16 packages with the PWD alone took up works on 50% of these stretches.

The PWD had engaged private contractors for beautification of roads around Yamuna Sports Complex, CWG Village, IGI Stadium (Ashram to Bhairon Marg), Kishan Ghat, Chhatarsal Stadium, Dr Karni Singh Shooting Range and Africa Avenue. According to the CAG audit report on the Games, the Delhi government decided in 2004 to implement streetscaping and beautification before the Games. But the project remained in a dormant stage till May 2008 when the government started selection of consultants.

The Central auditor's report says while PWD work spanned over 42km, MCD project covered 23km. NDMC, DDA and DIMTS executed the streetscaping of only 7.5km. The audit report said that the projects were consultant driven. In the case of PWD, the work largely went to Satya Prakash and Brothers at Rs 124.7 crore.

The auditor has found that the consultant selection was arbitrary and non-transparent. It observed that six packages were assigned to consultants simply on the basis of financial quotations and negation with two consultants without specifying the technical works done.

The report also points out that the streetscaping works were awarded at per km costs ranging from Rs 3.63 crore to Rs 9.75 crore with an average cost of Rs 5.32 crore. Moreover, the adoption of richer specifications and higher rates resulted in mismanagement and loss of Rs 59.6 crores.

The CAG has observed that the works awarded and executed in ad hoc and arbitrary manner "confirm wasted public funds totaling Rs 101.02 crore".
The estimated cost was Rs 209.14 crore while the value of the tender was Rs 242.01 crore. the department justified the cost at Rs 254.86 crore.