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LG insists on efficiency, cost rationalization, financial probity & quality in Civil Construction

Date: 
Friday, August 12, 2022

● LG insists on efficiency, cost rationalization, financial probity & quality in Civil Construction

● Issues instructions to agencies involved in Civil works to ensure the same

● LG Asks for an ATR by 30th September- will monitor regularly

Committed to enhance efficiency, rationalize costs, ensure financial probity and improve quality in civil/ construction and other works, the Lt Governor, Shri VK Saxena has flagged these to the different project execution and implementation agencies in Delhi. He has shared detailed observations and issued specific instructions to this effect to MCD, NDMC & DDA.

Shri Saxena has directed for a thorough Review of Existing Work Procedures for Improvement of Quality, Financial Probity and Timely Completion of all projects.

It may be noted that the LG has been reviewing various ongoing projects of different Agencies (DDA, MCD, NDMC etc.) in the National Capital, wherein it came to his notice that projects are invariably exceeding the stipulated PDC (Probable Date of Completion). This not only resulted in avoidable cost escalation but also delays in making the assets available to the public, he has noted.

Taking a serious view of these issues, Shri Saxena, who has surprised officials by his in depth knowledge of engineering, ecology, botany and horticulture matters, has pointedly conveyed the following to the Agency Heads concerned;

1. "In a number of projects, the original financial scope as per the administrative approval invariably gets exceeded (often substantially) due to poor planning, delay in execution poor financial probity resulting in major Audit paras, MFAI (Major Financial Accounting Irregularity) or even CVC enquiry cases. Besides causing financial loss to the exchequer it adversely impacts the department's image in public eye."

2. "In some projects due to routine planning and estimation, the administrative approvals and technical sanctions are approved at much higher rates when compared to the tender accepted rates. This avoidable inflation of administrative approval/ technical sanction, invariably results in faulty budgetary allocation, thereby blocking limited public funds which otherwise could have been utilized for other projects."

3. "In few other cases of PPP mode of execution, it has come to notice that the Departments/ Agencies tend to take a complete lackadaisical approach, on the premise that the entire responsibility of the project lies on the firm/ agency executing the project. This is highly inappropriate, since the ultimate ownership remains that of the Department/ Agency funding the project."

4. "It is seen that Operations/ Maintenance/ Repairs in various Departments is currently being provided through multiple contract system resulting in delay and often substandard quality of work."

Accordingly, the Lt Governor on August 11, issued the following directions:

1. "It is advised to reduce the number of tenders and contracts by floating a single tender for annual operation and maintenance of various similarly placed projects. This will not only reduce paper work and time overruns but will also bring in economy, besides enabling better monitoring and securing quality output. In the interest of efficiency, the above exercise should be undertaken expeditiously and action taken report forwarded to this office by 30th September, 2022.

2. In view of the above it is hereby directed that officials at all levels involved in planning, execution & monitoring of civil/engineering projects should strictly adhere to the laid down rules and regulations both in letter & spirit. So as to facilitate timely completion of projects with uncompromised quality and utmost financial probity. Wherever required relevant departmental procedures should be suitably reviewed.

3. The Departments/Agencies must create a suitable deterrence mechanism, wherein the defaulters are identified, responsibilities are fixed and exemplary action is taken in a time bound manner to set the tone for efficient and smooth functioning.

The LG will be reviewing the implementation of his directions and the effects achieved thereof, on a regular basis.

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