NHAI ‘facilitated’ `455 cr viability gap funding: CAG

The startling revelation has been in the Comptroller and Auditor General’s report on the implementation of Public Private Partnership Projects (PPP) in NHAI.

“The building of a 4-lane stretch on Madhya Pradesh/Maharashtra border -Nagpur – Kamptee-Kanhan and Nagpur by pass was approved by CCEA in February 2009 at a cost of Rs 1,170.51 crore. To make the project viable, NHAI added the maintenance of  the already constructed 22 kilometre 4-lane stretch of Nagpur-Hyderabad section along with tolling lights without the approval of CCEA,” CAG report said.

It further says, “Fresh request for qualification was not invited after restructuring and project was awarded to M/s Oriental Nagpur By pass Construction Pvt. Ltd. with a VGF of 455.21 crore.” The national auditor observed that the amount of VGF, which also included cost of 4-lane project (Rs 104.00 crore) handed over to the concessionaire, worked out at Rs 559.21 crore (47.77 per cent). “This was in violation of ceiling limit of VGF of 40 per cent of the total project cost laid down by CCEA. The excess VGF worked out to Rs 91.00 crore,” CAG said.

Meanwhile, the Ministry of Road Transport and Highways assured the national auditor that they will look into the observation highlighted by them and necessary steps will be taken after going through the agreement between the company and government authorities.