Govt pulled up for undue favour to contract firm

Bhubaneswar: The Principal Accountant General has pulled up the state government for doling out undue benefit of Rs 4.86 crore to a contractor engaged in construction of a bridge over Mahanadi on Cuttack-Nuapatana road.

In its draft audit report, office of the Principal Accountant General said administrative approval for the work for construction of the high-level bridge (2583.40 metre) over River Mahanadi connecting Cuttack city to Nuapatana under Nabard assistance was given in August 2014.

The work was awarded to a contractor in October 2015 at a cost of Rs 142.41 crore stipulating completion by April 2018 on EPC mode.

The scope of the work included a bridge and its approach roads of 400 metre length on both sides.
The work was completed in March 2018 and the contractor was paid Rs 142.41 crore (100 per cent) in January 2019.

According to sources, the government has awarded the tender to SP Singla Constructions Pvt. Ltd for the work. However, the contractor executed approach road of 127 metres (62 metres on Cuttack side and 65 metre on Nuapatana side).

The balance 273-metre approach road including the work related to road furniture and safety devices was left unexecuted, it said.

“For omission of 273-metre road work neither the authorities instructed the contractor to submit a proposal for change of scope, nor the contractor proposed a reduction in the contract price, which led to undue benefit of Rs 4.86 crore to the contractor,” the auditor said.

The AG has asked the Works department to submit a reply to the findings for inclusion in the upcoming report.

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