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Construction : Web Exclusive | May 2013 | Source : Construction Update

NHAI loses Rs 874 cr on project delays - CAG

The National Highways Authority of India (NHAI) has incurred a loss of around Rs 873.85 crore due to delay in completion of port road connectivity (PRC) projects. This was stated by the Comptroller and Auditor General of India (CAG) and it observed this while reviewing the operations of special purpose vehicles (SPVs) formed for implementation of PRC projects that connect major ports.

The Cabinet Committee on Economic Affairs, while granting approval in December 2000 to provide four-lane connectivity to the major ports in the country on build, own and transfer basis through SPVs, had directed the NHAI, which develops, maintains and manages the National Highways, to award for PRC project by March 2002.

Accordingly, these projects were expected to be completed in 2-3 years of award of contract. The NHAI/SPVs, however, did not prepare corporate/strategic plan for timely implementation of these projects. The CAG in its report observed that there was a delay in formation of SPVs and award of contracts in various projects. None of the projects was completed by the scheduled completion date.

 
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