Dept allots project without comparing price estimates, suffers Rs 1.03-cr loss: CAG

Sushil Manav

Tribune News Service

Chandigarh, May 5

A report by the Comptroller and Auditor General has revealed loss of Rs 1.03 crore to the Technical Education Department after construction of Government Polytechnics was allotted to the RITES Limited, an engineering consultancy company, without analysing and comparing the rough cost estimates with Public Works Department.

The report said the Union Ministry of Human Resource Development had launched a project for setting up Government Polytechnics (GPs) in seven districts of the state at a cost of Rs 12.30 crore in January 2009.

The work to construct these polytechnics was initially given to thePublic Works Department (B&R) in September 2009 as its rates were low.

Later, however, the work was assigned to the RITES Limited in March 2010 keeping in view its good track record in terms of quality construction and timely completion of projects.

An advance payment of Rs 8 crore for the above mentioned works was made in March 2010 to the RITES whereas the preliminary cost estimates for the construction of polytechnics were received in November 2010.

Although the rates quoted by the RITES were 30 per cent higher than those of the Public Works Department (B&R), yet, the department went ahead and signed an agreement with RITES in July 2011.

However, at the insistence of the then Principal Secretary, Technical Education Department, the agreement with RITES was reviewed in May 2012 following which the construction work was allotted to the Public Works Department (B&R).