This Expressway In Delhi Costs 14 Times More Than The Approved Budget; Here's What The CAG Found

According to the Comptroller and Auditor General (CAG), the cost of the Dwarka Expressway constructed under the Centre's Bharatmala Pariyojana phase-1 has exceeded the approved budget by 14 times. The CAG report states that the highway was built at a significantly higher cost of Rs 250.77 crore per kilometre, compared to the approved cost of Rs 18.20 crore per kilometre.

In response to the report, the Ministry of Road Transport and Highways explained that the Dwarka Expressway was designed as an eight-lane elevated corridor with minimal entry and exit arrangements to facilitate smooth inter-state traffic movement. This was cited as a reason for the higher cost.

However, the CAG found no justification for the planning and construction of eight lanes (elevated lanes) considering the average daily traffic of 55,432 passenger vehicles. The original plan only called for six lanes (at grade lanes) to accommodate the average annual daily traffic of 232,959 passenger vehicles.

The report also highlighted that the Dwarka highway is not the only project with a significant discrepancy between approved and actual costs. Across India, the sanctioned costs under the Bharatmala Pariyojana were found to be 58 per cent higher than the approved costs.

The cost of the project length of 26,316 km was sanctioned at Rs 846,588 crore (Rs 32.17 crore/km), which is higher than the CCEA approved length of 34,800 km at a cost of Rs 535,000 crore (Rs 15.37 crore/km).

Despite the increasing costs, the deadline of 2022 for completing 34,800 km of national highways has not been met. As of 31 March 2023, only 13,499 km of national highways have been completed, which accounts for 38.79 per cent of the CCEA approved length. This includes the construction carried out during the COVID pandemic.

The report highlights that the significant increase in costs is due to changes made in the scope of projects and cost estimates. The adoption of richer project specifications for projects awarded under Bharatmala Pariyojana Phase 1 has resulted in a cost increase of Rs 10 crore per km of construction.

To meet the need for additional funds, funds approved for other schemes (Rs 157,324 crore) are being utilised. As of 31 March 2023, the report states that 78 projects (1,752 km combined) approved under other schemes are being reported as achievements of Bharatmala Pariyojana Phase-1.

According to the report, discrepancies were not limited to fund management alone. The appraisal and approval mechanisms decided by CCEA were also found to have not been strictly followed.

The CAG report highlighted cases where successful bidders did not fulfill tender conditions or were selected based on falsified documents. Additionally, work was awarded without approved detailed project reports or based on faulty reports.

The report revealed that implementing agencies were still awarding projects without ensuring the availability of required land, leading to delays in project construction and completion. Furthermore, several Bharatmala projects were being implemented without proper environmental clearance, disregarding prescribed procedures.

The report also noted that safety consultants were not ensured at all stages of construction. In some projects, incorrect computation of the price-adjustment formula resulted in contractors and concessionaires being paid excessive price adjustments amounting to Rs 99.16 crore. Additionally, there was a diversion of funds totaling Rs 3,598.52 crore from escrow accounts for HAM/BOT projects.

According to the report, the rate of daily construction for projects under Bharatmala Pariyojana has significantly increased from 1.04 km in 2018-19 to 12.37 km in 2022-23.

In another report released on the same day, it was found that toll rules have been violated in multiple states in south India, resulting in an excessive burden of Rs 154 crore on road users.

Due to the non-implementation of NH Fee Amendment Rules 2013, NHAI continued to collect user fees at three toll plazas (Nathavalasa, Chalageri, Hebbalu) during the delayed construction period, despite the amended rule stating that no user fees should be charged. As a result, road users had to pay user fees during the project delays.