The cost of highway projects under the Bharatmala programme rose significantly from initial estimates due to the construction of wider highways, tunnels, flyovers, and more expensive land acquisition, a top Roads Ministry official said.
The official said that the Comptroller and Auditor General (CAG) report on Bharatmala has overlooked multiple intricacies while concluding that were cost overruns in the Rs 5.35 lakh crore programme.
This programme was approved by the Cabinet Committee on Economic Affairs (CCEA) in July 2017.
In its report tabled in Parliament on August 10, the CAG concluded that only 75.62% of approved length has been awarded while 158.24% of approved financial outlay was sanctioned up to March 31, 2023.
The auditor also flagged irregularities in award of highway projects by National Highways Authority of India (NHAI) and the National Highways & Infrastructure Development Corporation Limited (NHIDCL). These are the implementing agencies which develop centrally funded road projects.
“The CCEA approval for Bharatmala did not cover cost of flyovers and ring roads. Land acquisition cost alone has gone up by five times from original estimates of Rs 30,000 crore. There is also inflation that has jacked up road building material costs,” the official said, explaining that these points will soon officially be explained to the auditor.
Responding to a query on discrepancies highlighted in the bidding process by CAG, the official said that a probe will be initiated in any instances that are brought to the notice of the government.
According to the CAG, many instances of irregularities in award of projects by implementing agencies were observed in violation of the prescribed processes of tendering.
In its recommendation, the auditor noted that anomalies in tendering and selection process of concessionaires “should be investigated to fix responsibility on erring officials who failed to ensure due adherence to prescribed rules and guidelines.”
