Nagpur metro project: CAG flags various issues, says MMRCL could not monetise land parcels

The Comptroller and Auditor General of India CAG has flagged various lapses in the implementation of the Nagpur Metro Rail project and said the Maharashtra Metro Rail Corporation MMRCL could not monetize the land parcels which would have generated revenueThe performance audit was conducted covering planning implementation monitoring and operations of the Nagpur Metro Rail project by MMRCL during the period 201516 to 202021Prime Minister Narendra Modi on December 11 inaugurated the remaining reach 2 and reach 4 routes of Nagpur Metro and laid the foundation for phase 2 which is the extension of phase 1 of Nagpur MetroThe report was tabled in Parliament on ThursdayIn the report the CAG observed as per the detailed project report the commercial operation of phase 1 was to be achieved by April 2018 but only two out of four Reaches have begun commercial operationThe report stated at the time of the award of key civil works the MMRC was aware that the envisaged commercial operation would not materialize in April 2018 as the scheduled completion dates of key civil works began in October 2018 and went on till February 2021Yet no revised target was laid down for the commercial operation of the entire project with the result that the construction work lingered on and is yet to be completed March 2022 it statedThe CAG also mentioned the MMRCL did not publish tenders on the central public procurement portal 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 ratesMMRCL tendered the work of installation of a ballastless track in Reach 1 and Reach 3 without conducting a proper survey and assessing the actual items required for the work It engaged a track advisor for the purpose Due to the improper framing of the work estimate the estimated cost put to tender was inflated by Rs 1445 crore ie by 2413 per cent as per the reportAlso Read Nagpur Metro ridership tops 1 lakh on day two after inauguration by PM ModiIt said the tender evaluation lacked transparency as bidders who did not submit the required documents to verify qualification criteria were awarded contracts in two casesOn the operational performance CAG said the MMRCL could earn only Rs 027 crore from property business and advertisement which was 028 per cent of the estimated revenue Rs 97 crore as per the Detailed Project ReportThe land acquired for stations was more than double the requirements projected in the Detailed Project Report 73497 sq mtr of land was acquired against the projection of 32752 sq mtr The MMRCL planned property development through the monetization of land parcels and identified four land parcels However it could not monetize the land parcels and as a result no revenue could be generated it saidThe CAG said the MMRCL constructed twolevel basements for the parking facility at the Kasturchand Park land parcel near Kasturchand Park Metro station at Rs 2475 crore The construction of a parking facility costing Rs 2475 crore for a station that cost Rs 4122 crore without the development of a commercial complex lacks justification and is not a financially prudent decisionThe total surplus generated by MMRCL from 201516 to 202021 was Rs 1314 crore and the instalment amount due to be paid to the external agencies during 202122 was Rs 37779 crore it saidTherefore the surplus generated is only a fraction of the amount required for servicing of debt total loan amount Rs 4521 crore raised by the Government of India for the project from external funding agencies it statedThe CAG also said the MMRCL did not ensure that the stamp duty was paid at the prescribed rate as per The Maharashtra Stamp Amendment Act 2015 while entering into agreements with contractors resulting in a loss of revenue of Rs 476 crore to the state exchequerThe CAG also found that MMRCL adopted 25 kV AC traction system for the project despite the suggestions for the adoption of 750 V DC system in view of more suitability and potential cost saving of Rs 719 croreThe project consists of two corridors for a total length of 38478 km 33078 elevated and 540 km atgrade with 38 stations The two corridors viz NorthSouth Corridor and EastWest Corridor were further divided into two Reaches each out of which one Reach in each corridor and 23 out of 38 stations have been made operational till March 2022This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever