Nagpur: Government of Maharashtra and Government of India decided in 2014 to implement Nagpur Metro Rail Project to provide energy efficient and eco-friendly Mass Rapid Transport System for Nagpur City through a Joint Venture, Maharashtra Metro Rail Corporation Limited (MMRCL), with an estimated cost of Rs 8,680 crores.
The performance audit was conducted by Comptroller and Auditor General of India (CAG) covering planning, implementation, monitoring, and operations of the Nagpur Metro Rail project by MMRCL during the period 2015-16 to 2020-21.
The CAG report was made public in December 2022. The CAG report flagged various lapses in the implementation of Nagpur Metro Rail Project. The CAG report mentioned the MMRCL did not publish tenders on the Central Public Procurement Portal (CPPP) as stipulated by the Department of Expenditure, Union Ministry of Finance, and lost the opportunity to ensure wide publicity for the tenders to obtain competitive rates.
Maharashtra Metro Rail Corporation Limited tendered the work of installation of ballast less track in Reach 1 and Reach 3 without conducting proper survey and assessing actual items required for the work, though MMRCL engaged a track advisor for the purpose. Due to improper framing of work estimate, the estimated cost put to tender was inflated by Rs 14.45 crore, i.e., by 24.13 percent.
The CAG report said that the tender evaluation lacked transparency as bidders who did not submit required documents to verify qualification criteria were awarded contracts in two cases. Maharashtra Metro Rail Corporation Limited awarded major/substantial works amounting to Rs 877.58 crore as additional works to existing contractors/consultant working in the project on nomination basis, citing emergency, timely completion of the project and the probable delay which may arise due to following the laid down tendering process.
The additional works were awarded by invoking a clause in the existing contract which permitted quantity variation of (+/-) 25 percent, though the clause was meant for regularization of any variation in the bill of quantities during execution and not for altogether new works. While awarding the new works, the enhanced technical and financial capabilities required for execution of the additional works were not assessed with the result that the envisaged benefit of timely completion also did not materialize.
The CAG report further said Maharashtra Metro Rail Corporation Limited paid interest free mobilisation advance to contractors, the recovery of which was made from the running bills of the contractors, as per the progress of work. This was not in accordance with the guidelines of Central Vigilance Commission, which prescribed time bound recovery of mobilization advance. Since the works were progressing at a slow pace, recovery of mobilization advance amounting to Rs 130.86 crore was pending (April 2021).
Maharashtra Metro Rail Corporation Limited did not recover additional cost incurred amounting to Rs 45.30 crore from three contractors on account of subsequent re-award of their terminated/de-scoped works at higher cost. This was due to failure by Maharashtra Metro Rail Corporation Limited to include ‘risk and cost clause’ in one contract and non-invoking of risk and cost clause in two contracts.
The CAG report mentioned that due to inadequate planning in tendering of major works, non-deployment of adequate manpower by contractors, not getting timely clearances for railway crossing, non-furnishing of drawings and design in time to the contractors and providing access to the work front to the contractors resulted in delay/non-completion of works in the project which resulted in the project being only partially commissioned even after lapse of three years from planned commercial operation of the entire project. Maharashtra Metro Rail Corporation Limited had to bear price escalation of Rs 72.08 crore due to non-completion of major civil works within the stipulated contract period.
