Question : IRREGULARITIES IN GOLDEN QUADRILATERAL PROJECT



(a) whether the Golden Quadrilateral highway project has been found dotted with irregularities and the CVC has placed it under scanner;

(b) if so, the details thereof and the number of projects in which irregularities detected;

(c) whether contractual provisions were violated by consultants and low quality material was used; and

(d) if so, other irregularities noticed and corrective steps in this regard?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI K. H. MUNIYAPPA)

(a) to (d) The Chief Technical Examiner`s Organisation (CTE) of the Central Vigilance Commission has till 01.07.2004 conducted intensive examination of only 12 projects under the Golden Quadrilateral component of the National Highways Development Project. The main observations of the CTE relate to the manner of selection and appointment of consultants, deficiencies in the Detailed Project Report (DPRs) prepared by the consultant, adoption of higher rates in the estimates, performance of consultants, change of key personnel of the consultants, preparation of market rate justification while awarding work, payment of Interest free mobilization advances, problem of unauthorized sub-contracting and instances of poor quality of construction.

Based on CTE`s observations, National Highways Authority of India has taken necessary corrective measures such as appointment of proof consultants to check design of structures to ensure safety, making DPR consultants accountable for deficiencies noticed in the DPRs and setting up of an institutional mechanism to deal with such cases. In order to curb frequent change of key personnel of the supervision consultant mid way through the projects, such personnel are being debarred from future projects of NHAI. Recovery is being effected wherever use of poor quality of material, workmanship is established. In future projects, release of mobilization advances will be in phases linked to the progress made. For ensuring quality of works, Engineers India Ltd. has been engaged to conduct quality audit of the projects. M/s. Price Waterhouse has been engaged for conducting internal financial audit. Wherever instances of unauthorized sub-contracting has been brought to notice, suitable action against the civil works contractor is being taken.