‘Wasteful expenditure due to deficient planning’
BILAL HUSSAIN
Highlighting the inefficient expenditure by the state run public corporation, J&K State Cable Car Corporation, the Comptroller and Auditor General of India (CAG) in its latest report says it is due to deficient planning of the concerned agencies.
According to the report the corporation embarked on one of the projects without proper planning that resulted in blocking of Rs 45.28 lakh for about five years and wasteful expenditure of Rs17.77 lakh.
The Managing Director, J&K State Cable Car Corporation (JKCCC) issued August 2006 orders for construction of a centrally heated restaurant to be constructed at Apharwat Gulmarg without Administrative approval (AA)/Technical sanction (TS) or approval by the Board of Directors (BoD), the report mentioned.
“We noticed March 2010 that the structural designs for the restaurant were got prepared August 2006 by a consultant. The work orders for supply, erection, fixing, cutting and hoisting of structural steel were issued October 2006 to a firm at an estimated cost of Rs 90.65 lakh,” CAG report said.
In December 2006 the firm supplied the ordered quantity of 870 quintals of structural steel for which an amount of Rs 60.90 lakh was paid by the company. The company simultaneously allotted base work of the restaurant to piece workers and an amount of Rs 17.37 lakh had been incurred as of March 2007. “It was seen that apart from supply of the steel, no other components of the work order viz., erection, fixing, cutting and hosting of structural steel design had been undertaken by the firm concerned with the result the steel supplied had not been used as of March 2010,” the report said.
According to the report it was seen that a committee constituted in March 2007 by the BoD, to ascertain the status of work, noticed that the steel members supplied were of ‘very high specifications and had ordered for its disposal and construction of the restaurant by erection of a structure similar to the one that had been erected by army for its use at Apharwat.’
However, no action to start the works on foundation works already executed or to dispose off the material was taken till October 2010 when the Company allotted the construction work to J&K Housing Board (Board) at an estimated cost of Rs 2.59 crore. It was, however, seen (July 2011) that the Board had lifted only 200 quintals of steel valued at ` 15.62 lakh for meeting of its full requirement for the restaurant, the report said.
The remaining quantity of 670 quintals valued at Rs 45.28 lakh was lying un-utilized and the Corporation contemplated its disposal by way of transfer to other needy Public Sector Undertakings or state government departments which, however, was pending as of September 2011.
It was also revealed that the foundation already constructed had not been put to use by the Board as the new restaurant was being constructed at a place away from the previous location. “This had resulted in non-utilization of the already constructed plinth and thus, rendered the expenditure incurred on it wasteful,” the report lamented.
“The action of the corporation in embarking upon the project without proper planning resulted in blocking of Rs 45.28 lakh for about five years and wasteful expenditure of Rs17.77 lakh,” the report highlights.
The matter was referred to the Government in September 2011, reply was awaited till October 2011. The Company must refrain from taking up works in an adhoc manner and without Administrative approvals and Technical Sanction. Planning and implementation aspects should be given due consideration to avoid loss on account of faulty project implementations.
BILAL HUSSAIN
Highlighting the inefficient expenditure by the state run public corporation, J&K State Cable Car Corporation, the Comptroller and Auditor General of India (CAG) in its latest report says it is due to deficient planning of the concerned agencies.
According to the report the corporation embarked on one of the projects without proper planning that resulted in blocking of Rs 45.28 lakh for about five years and wasteful expenditure of Rs17.77 lakh.
The Managing Director, J&K State Cable Car Corporation (JKCCC) issued August 2006 orders for construction of a centrally heated restaurant to be constructed at Apharwat Gulmarg without Administrative approval (AA)/Technical sanction (TS) or approval by the Board of Directors (BoD), the report mentioned.
“We noticed March 2010 that the structural designs for the restaurant were got prepared August 2006 by a consultant. The work orders for supply, erection, fixing, cutting and hoisting of structural steel were issued October 2006 to a firm at an estimated cost of Rs 90.65 lakh,” CAG report said.
In December 2006 the firm supplied the ordered quantity of 870 quintals of structural steel for which an amount of Rs 60.90 lakh was paid by the company. The company simultaneously allotted base work of the restaurant to piece workers and an amount of Rs 17.37 lakh had been incurred as of March 2007. “It was seen that apart from supply of the steel, no other components of the work order viz., erection, fixing, cutting and hosting of structural steel design had been undertaken by the firm concerned with the result the steel supplied had not been used as of March 2010,” the report said.
According to the report it was seen that a committee constituted in March 2007 by the BoD, to ascertain the status of work, noticed that the steel members supplied were of ‘very high specifications and had ordered for its disposal and construction of the restaurant by erection of a structure similar to the one that had been erected by army for its use at Apharwat.’
However, no action to start the works on foundation works already executed or to dispose off the material was taken till October 2010 when the Company allotted the construction work to J&K Housing Board (Board) at an estimated cost of Rs 2.59 crore. It was, however, seen (July 2011) that the Board had lifted only 200 quintals of steel valued at ` 15.62 lakh for meeting of its full requirement for the restaurant, the report said.
The remaining quantity of 670 quintals valued at Rs 45.28 lakh was lying un-utilized and the Corporation contemplated its disposal by way of transfer to other needy Public Sector Undertakings or state government departments which, however, was pending as of September 2011.
It was also revealed that the foundation already constructed had not been put to use by the Board as the new restaurant was being constructed at a place away from the previous location. “This had resulted in non-utilization of the already constructed plinth and thus, rendered the expenditure incurred on it wasteful,” the report lamented.
“The action of the corporation in embarking upon the project without proper planning resulted in blocking of Rs 45.28 lakh for about five years and wasteful expenditure of Rs17.77 lakh,” the report highlights.
The matter was referred to the Government in September 2011, reply was awaited till October 2011. The Company must refrain from taking up works in an adhoc manner and without Administrative approvals and Technical Sanction. Planning and implementation aspects should be given due consideration to avoid loss on account of faulty project implementations.
No comments:
Post a Comment