SHILLONG, MAR 24: The delay in the completion of the Greater Shillong Water Supply Scheme (GSWSS) Phase-III led to unfruitful expenditure of Rs 131.84 crore.
This was revealed by the report of the Comptroller and Auditor General of India (CAG), which was tabled in the just concluded budget session of the State Legislative Assembly.
The report also revealed that Meghalaya was also deprived of additional central assistance of Rs 17.41 crore due to failure to implement the reforms as per timelines under JNNURM.
“Failure to complete the project even after more than four years from the stipulated date of completion and after utilizing Rs 131.84 crore had rendered the entire expenditure incurred on the project unfruitful,” the CAG report said.
The report also said that the project was also fraught with risk of failure as no further funds had been released by state government after June 2012.
More importantly, the project objective of reducing the unaccounted flow of water (UFW) by 55.75 million litres of water by 2011 and creating infrastructure to provide for supply of additional 24 million litres of water to the projected population of the Shillong Urban Agglomeration from 2011 to 2041 had been frustrated, it stated.
According to the report, the DPR for the GSWSS phase-III was prepared by PHE department in July 2008 at an estimated cost of Rs 193.50 crore, which was approved by the Central Sanctioning and Monitoring Committee (CSMC), JNNURM, Ministry of Urban Development (MoUD) on October 2008.
The projected cost was at Rs 193.50 crore with central share fixed at Rs 174.15 crore and the state share fixed at Rs 19.35 crore. The project was to be completed by May 2011.
While monitoring of the project was done by the Meghalaya Urban Development Authority the nodal agency, the project was implemented by the PHE department.
As per the Guidelines for the Urban Infrastructure and Governance (UIG), a sub mission under JNNURM, stipulated that the state governments should undertake certain mandatory and other optional reforms at urban local body and state level in order to be eligible for additional central assistance (ACA).
The ACA was available up to the extended period of 31 March 2014 and thereafter the state government was to complete the project out of their own resources.
On scrutiny of records of MUDA, the CAG said it has revealed that the state government had committed to undertake the reforms stipulated in the guidelines, but due to its inability to adhere to them as per the timelines, the MoUD deducted Rs 17.41 crore being 10 per cent of the total ACA while releasing the 2nd installment to the state.
According to ‘reforms calibrated milestones and scores’ as appraised by the MoUD, the state had achieved only 69% of the stipulated reforms.
To mitigate the shortfall, the state government released an additional amount of Rs 4.13 crore from its own share.
During December 2011, the ongoing project was inspected by an Independent Review and Monitoring Agency appointed by MoUD and based on its appraisal report the 3rd installment of Rs 43.54 crore was released on January 2012 to the state government. “Thereafter, no further funds had been released by the Government of India,” the report stated.
On further examination, it said, “It was revealed although the project was to be completed by May 2011, only 36% of the work had been completed up to December 2013 even after utilizing Rs 131.84 crore towards the project.”
Consequently, MoUD declined on September 2014 to release the 4th installment of the central share of Rs 43.54 crore as the extended period of March 31, 2014 was over, even after quarterly progress report only 38% of the work had been completed even up to March 2015.
The CAG report stated, “Thus, inability of the state government to implement the reforms as per timelines had resulted in the state being deprived of the ACA of Rs 17.41 crore and failure to complete the project on time led to additional loss of ACA of Rs 43.54 crore.”
“This has also led to the state being burdened by additional liability of Rs 60.95 crore which had to be met from its own resources,” it added.
Meanwhile earlier during the Assembly session, the issue of delay in the completion of the GSWSS phase III and water scarcity problem faced by the residents of Shillong was raised by opposition bench.
Interestingly in his reply to the concerns expressed by many legislators, Deputy Chief Minister RC Laloo had announced that the state government had already submitted proposal for implementing the GSWSS phase-IV.
According to him, the proposal is waiting for approval of the Ministry of Urban Development.-By Our Reporter
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