THE MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE(SHRI KANTI LAL BHURIA)
(a): Yes, Sir.
(b)to(d): The Union Government in September 1997 had accorded approval to the
proposal of Government of Karnataka for expansion of the existing fishing harbour at
Mangalore as stage-II at a cost of Rs.75 lakhs under the Centrally Sponsored Scheme
(CSS). The project was to be completed by September 2003 as per extension granted.
The Central share to the tune of 50% of the project was released in two instalments to the
State Government, the first instalment of Rs.30 lakhs in July 2000 and the second of
Rs.7.50 lakhs in June 2003. On scrutiny of the Revised Cost Estimate proposal submitted
by the Government of Karnataka, it has been observed that the cost escalation in the
project has mainly occurred due to deviation from the approved design, addition of new
items and facilities and higher tender cost. The State Government has been requested to
furnish adequate justification for the above ground.