A report by the Comptroller and Auditor General of India tabled in the Maharashtra Assembly flagged Rs 297 crore in wasteful spending on road projects. The audit cited poor planning, inflated standards, incorrect cost estimates, and excessive insurance allocations as key reasons behind the losses
Vehicles pass through the Gaimukh ghat stretch on the Ghodbunder-Gaimukh road in Thane West. (Pic/Satej Shinde)
A report tabled by the CAG (Comptroller and Auditor General of India) in the state legislative assembly on Wednesday highlighted that around Rs 297 crore was wasted on road works in Maharashtra, bringing attention to lapses in how these projects were planned and carried out.
The report further observed that much of the excess spending stemmed from poor preparation and flawed design decisions. “In multiple instances, construction standards were fixed at levels higher than needed, resulting in avoidable financial burden,” the CAG remarked.
The findings also flagged shortcomings in project documentation. Cost calculations were often incorrect, and budgets included components that were never executed. For example, funds were earmarked for land purchases that ultimately did not happen.
The review additionally identified that insurance costs were set too high within the operation and upkeep budget, leading to an extra liability of Rs 34.56 crore across 17 of the 42 examined work segments.
The audit further noted that insurance costs were based on a flat rate of 0.15 per cent of the estimated project value, rather than actual premium amounts. As a result, contractors wound up paying far less, while the budget had set aside much higher sums. The review also highlighted that a fixed amount of Rs 10 lakh annually was allocated for road patrol expenses, regardless of how long the road stretch actually was.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
