cag's cwg audit report - chapter - 26 (2011)

8/6/2019 CAG's CWG Audit Report - Chapter - 26 (2011)

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c : : :wl-e ..::I:uOther InfrastructureDevelopment Activities

TETRAis a professional mobile communication service essentially meant for emergencyservices and government agencies. In September 20081 GNCTD decided to introduce aTETRAnetwork in time for CWG-20101 based on the experience of Beijing Olympics 2008.GNCTD awarded the contract for TETRA to HCL-Motorola at Rs.99.81 crore for an 87month period, covering not only the Games period but also a seven year legacy period. Inour view, the decision to extend TETRAfor legacy usefor seven years was ill-conceived. Aproper assessment of the requirements of Delhi Police (the main user) and other publicagencies as well as the replacement of existing networks with TETRA (since nocommunication was permitted by DoT between TETRA and other networks) was notcarried out.During CWG-20101 Delhi Police conveyed its dissatisfaction with the signal quality andtermed it a failure. As regards legacy use, it is not clear how these 3657rented TETRAsetswill replace Delhi Police's existing radio communication system of nearly 11000 sets. PostCWG-20101 most of these expensive TETRA sets are, in effect, no more than mobilephones.During CWG-20101 transportation services were provided for ferrying the athletes,technical officials and media persons 1 for which the low floor buses of DTCwere used.Other improvements to the transport facilities/infrastructure included construction ofnew bus parkinq, ticketing booths and bus queue shelters; and providing LEDdestinationboards on standard buses.For keeping the buses 'new'for CWG-20101 DTCkept about 16percent of its low floor fleet(471 buses) idle between March and August 2010. Further, 78per cent of the Bluelinefleet was also taken off the roads in the NDMC area (but not in the MCD area) for theduration of the Games. As DTC diverted 1338 drivers full time for the purpose of theGames, it could not deliver its scheduled kilometre coverage for the public. Thus, publictransport was greatly disrupted; this could have been reduced by showing greaterempathy for the needs of the common man.Modernisation projects like LED destination boards on standard buses, construction ofTime Keeping Booths and modern bus queue shelters (BQSs) could not be completedbefore CWG-2010 as envisaged. The construction of 48 ticketing booths all over the cityappears to be an anachronism at a time when the buses are being fitted with GPS/ AVTS.For getting 1500 Bus Queue Shelters (BQSs) constructed before the Games, DTCand theTransport Department of GNCTC resorted to various methods of execution, whichindicated arbitrariness 1 ad hocism and lack of clarity in implementation of such a large

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Chapter 26 - Other Infrastructure Development Activities

project. So far, only 472 BaSs could be completed. lnterestinqly, DIMTSI a non-Government entity with 50per cent private shareholdinq, was awarded two projects forBaS on nomination basis - 800 BaSs with Governmentfunding and 250 BaSs on BOT. TheTransport Department had gone ahead with construction of 800 BaSs with Governmentfunding of Rs.96.70 crore, despite the Finance Department's protestations of lack offunds. Further, the concession fee for the BOT BaS awarded to DIMTS was kept undulylow compared to similar projects in Delhi like BOT-I of DTe.The bus parking constructed at the Ash Pond opposite the Millennium Park is not merely atemporary structure but has certain permanent constructions like the filling stations,washing areal boundary wall etc. Its use has continued well beyond the shortrequirements of the Games. This was clearly in violation of the Master Plan for Delhi2021 and the proposed Zonal plan of Delhi, which earmarks the area as a green zone withrecreational uses but without permanent construction.GNCTDplanned to commission a new power plant at Bawana on the grounds of increaseddependence on own power generation sources. The construction of the 1500 MWBawana gas-based power plant wasl however; detayed, and could not be completed intimefortheGames.Delhi Transco Ltd. (DTL) also took up five 220 KVA substations and seven correspondingcabling projects to strengthen the power supply situation in Delhi in time for the Games.Most of these projects were awarded very late (in the second half of 2009) and could notbe completed before the Games.Furthet; the contract award process was not transparent, as DTL had applied conditionsinconsistently to award contracts to favoured parties.

26.1 Secured CommunicationSystem (TETRA)

suitability for working at high speedse.g. high speed trains.

longer range which permits very highlevel of geographic coverage with fewerbase stations;

26.1.1 Introduction very fast call set-up;TETRAor Terrestrial Trunk Radio is aprofessional mobile communication servicewhich permits communication eitherthrough a network of base stations or pointto point communication like a walkie-talkie.Compared to commercial mobile networks(GSM or CDMA), TETRA's main advantagesare:

facilitation of mission critical networkwith a number of fall-back modes, andavailability of communication serviceseven during overload situations e.g.major public events or disasters; and

TETRAwas specifically designed for use bygovernment agencies, emergency services,

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Chapter 26 -Other Infrastructure Development Activities

Table 26.1 - Planned use oj TETRA(In Rs. Crore)

Department " " ' H u l l LegacyDelhi Police 3565OC 3221 NilDTC 747 82MCD 415DivisionalCommissioner 170OfficeH&FW 362 133PWD 100 NilOthers 863 80

In our view, the decision to provide 3656sets to the Delhi Police (DP) for legacy usewas ill-founded and ill-conceived. DPalready had an extensive integratedwireless communication system with: 10894 sets covering police stations,

police posts, pickets, border checkposts, PCRvans/ motorcycles/ambulances and tourist PCRs;

42 hotlines connecting with CCRs,hospitals, civic bodies, Governmentagencies; and

Satellite audio phones for CCRsatselected Delhi Fire stations, Mobilecontrol rooms and rescue and reliefteams.

DPwas the largest user of TETRAbothduring CWG-2010 and the legacy period. InSeptember 2009 they expressed anintention to limit their participation in theTETRAsystem only to CWG-2010 andwithdraw the previously projectedrequirement for the legacy period.However, LG, Delhi through his Principal

Secretary and the Chief Secretary, GNCTDprevailed upon the Commissioner of Police,Delhi (CP) not to withdraw the requirementprojected for Delhi Police: CS,GNCTD in his letter addressed to CP

dated 26 September 2009, stated thatsuch reduction at the stage of technicalevaluation would tantamount toviolation of CVCguidelines indicatinginflated demand in the RFPdocumentand lack of due diligence in firming upthe requirement. He further wrote "Youwill agree that procedural formalitiesand vigilance instructions are to bestrictly adhered to in tender matters.Commonwealth Games are catchingmedia attention and any slippage at thisstage is not desirable. In case inflateddemand has been projected earlier; thesame may be examined at your end. Itmay not be possible for Govt. of Delhi atthis stage to consider any reduction inrequirements of TETRAsets."

The LG,Delhi also communicated to CPthrough his Principal Secretary "toensure that DP requirements are notreduced or compromised in theproposed fully Secured CommunicationNetwork for Commonwealth Gameswhich is now at the stage of scrutiny oftechnical bids."

It is also pertinent to mention here, thatalthough DPwas represented in the lAG,they chose to withdraw only at a very latestage.

Thus, despite its reluctance to join theTETRAfor legacy use, DP did not take adecision in this regard in time, and waseffectively forced to go along with theproposal.



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GNCTD stated that Delhi Police had notinvested in the old communication systemin 2-3 years with a view to having the latestcommunication system expected fromTETRA.We do not agree with this view, as theexisting radio communication system of DPcomprised of 10894 sets with a life of atleast 15years. It is incomprehensible howjust 3656 rented sets would meet the legacyrequirements of Delhi Police, especiallywhen TETRAwould not be connected orintegrated with the existing communicationsystem (as per the DoT's stipulation). Thiseffectively means that TETRA users in theDPwould also have to carry the existinganalogue sets for communication across theDP network.26.1.4 Other legacy usersEven in respect of other user departments,the legacy use was not properly thoughtthrough: MCD had public mobile radio trunking

sets and mobile phones in closed usergroup (CUG) mode. MCD reduced itsrequirement of TETRAfrom 500handheld sets to 415 and deployed it indepartments like horticulture,education, sanitation etc. and even thePAto the Commissioner; this is not inkeeping with the objective of usingTETRAfor emergency services.

DTChad 27 trunk radio sets and mobilephones provided to officers, centralcontrol rooms, and regional controlrooms. DTCabandoned its functioningradio communication system in April2010, replacing it with the TETRAsystem, and deployed its 82 sets in alldepots (47), recovery vans (10) , airport

express services (9), control rooms (7)inspecting staff (6) and others (3).

The Health and Family WelfareDepartment had a wireless UHF basedtrunk radio system and a public mobilenetwork on CUG mode for key doctorsand hospital staff. They issued 83 setsto the Employee State InsuranceCorporation, who sought clarification asto how the sets were to be utilised. Ofthe remaining 50 sets, 17weredistributed to CMOs and other officers;and 33 static terminals were kept in theemergency rooms of various hospitals.

170 sets were given to the officers ofthe Revenue Department in theDivisional Commissionerates. Theseinclude 12 sets given to the DDMA(Delhi Disaster Management Agency).

While we do not question the decision toemploy TETRA for CWG-2010, thedecision to extend it for legacy use for 7years was iii-conceived, without a properassessment of the requirements ofeither OP or other public agencies. Littlethought was given to the task ofreplacing the existing networks with theTETRA (since no interconnection waspermitted by the DOT between theTETRA network and other networks).Post-CWG-2010, most of these expensiveTETRA sets (at monthly rentals rangingfrom Rs. 2168 to Rs. 2365 / month) are,in effect, no more than mobile phonesand are not being properly used for theunderlying objective of mission-criticalcommunications services for publicsecurity/ safety, emergency responseand other allied public services.

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26.1.5 Utilisation of TETRA duringCWG-2010

We found that the implementation of theTETRAcould be completed only by mid-September 2010, but its utilisation had notstabilized by the time of the Games due toinsufficient time for familiarisation. We alsofound that the largest TETRAusers duringthe CWG-2010 period - DP- were unable touse it due to poor signal quality, while theOC could not produce sufficient evidence ofusage: DP,which held 38 per cent of the sets

during CWG -2010 and 79 per cent forlegacy use, conveyed its dissatisfactionwith the signal quality inside thebuildings and underground aftersurveying the venues and other areasduring CWG-2010, as detailed in Annexe26.1. The Special Commissioner(Intelligence and Operations) called theTETRAsystem a "failure" and noted thatit was the existing police communicationnetwork that was utilised successfullyfor security related communicationduring the Games.

In response to our enquiry regardingdistribution of communication terminalsfrom the OC,JOG (Network-Technology), OC could furnish details ofdistribution to individuals of only 150sets and that too only at the GamesVillage. The details of distribution of theremaining 3071 communicationterminals to the OC could not beproduced, beyond a broad deploymentto 25 venues.

In response, GNCTD stated that the averageduration of talk time on TETRAby DelhiPolice was 72 hours/ day, while it was 130hours/ day for all Departments. This,

however, does not translate to effective andcomplete coverage, which was thegrievance of DP.The vendor raised a bill of Rs.9.46 crore forthe CWG-2010 period (September -October2010), which is not justified, consideringthat the system was finally optimised inmid-September 2010, and pro-ratareduction should be made.

In our view, considering the detailedstatistics available with the Delhi Police,payment to HCL-Motorola for the setsdeployed for use of the DP for CWG 2010should be appropriately deducted fornon-performance.

26.2 Transportation servicesfor CWG-2010

26.2.1 IntroductionGNCTD directed DTCto providetransportation services for ferrying theathletes, technical officials and mediapersons during the Games. Therequirement of buses for ferrying indifferent categories was: 600 AC low floor buses for the athletes

/Games family; 630 non- AC low floor buses for Delhi

Police; and 1516 low floor (AC/Non-AC) buses to

the OC for "mass Case", workforce/volunteers and spectators.

2 Castfor Ceremonies of CWG-2010

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26.2.2 Purchase of low floor busesDuring 2008-09, DTCprocured 2500 lowfloor buses (1000 AC and 1500 Non-AC} atan inordinately high price, which wasreported by us in Para 5.2.6 of Report of theCAG (Civil and Commercial), GNCTD, for theyear ended March 2009. We found thatbetween September and November 2009,DTCprocured additional 625 buses at thesame high price, exercising an optionclause, which cost the exchequer anadditional Rs.61.10 crore over the justifiedcost.26.2.3 Reduced transport services prior to

and during CWG-2010We found that at the direction of theMinister of Transport (GNCTD) DTCdid notdeploy 382 of the new low floor AC buses(delivered in March and July 2010), till 31August 2010 in order to ensure that theseremained in "new and unused condition"for the Games. Another, 89 low floor AC

buses were also withdrawn from the activefleet between June and August 20103 toavoid further damage to these buses, andkept idle. Together, these formed 16.44 percent of the low floor bus fleet of the DTCand 8.33 per cent of the overall fleet.Between September and October 2010,1338 drivers were withdrawn from regularbus schedule, and attached to 600 busesbeing plied on CWG-2010 duty. We foundthat the average fleet utilisation per bus perday decreased from 182 kms to 168 kmsduring the Games period of 17 days i.e., 1to 17 October. In addition, from 26September 2010 to 17 October 2010,operation of 757 Private Stage Carriage(Blueline/Whiteline) buses was stopped androutes of 981 buses curtailed in the NDMCarea (but not in MCD area) in view of theCWG.

57 from the last week of June 2010 to 31August 2010and 32 from the last week of August 2010



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GNCTD's reply that the buses were keptaside for various activities i.e. installation ofglobal positioning system, Tetra, radiofrequency identification tag etc. is notconvincing since these activities do notrequire deployment of buses to be kept onhold upto five months.

Thus, public transport was greatlydisrupted; inconvenience could havebeen reduced by showing greaterempathy for the needs of the commonman.

26.2.4 Incomplete implementation ofLEDproject

We found that poor planning and lack ofclarity till the late stage of award of thecontract resulted in incompleteinstallation of LEDdestination boardsnot only prior to CWG-2010 but even tilldate.

In October 2009, DTCdecided to installLEDDestination Boards on 1500 of itsstandard Buses on BOT basis in lieu ofadvertisement right. In November2009, tender specifications wereprepared and thereafter the issue wasdiscussed at various levels in DTCandTransport Department GNCTD. InFebruary 2010, Secretary cumCommissioner Transport directed (afterdiscussion with Minister Transport)decided that the contract would beawarded on BOT basis (in lieu ofadvertisement rights) and DIMTS wasnominated as the Bid Process Manager.

Finally in July 2010, the contract wasawarded to Castmaster Mobitec IndiaPrivate Limited and letter of intent

issued in July 2010, with the stipulationof project completion within fourmonths.

Eventually, LEDDestination Boards couldbe installed only in 500 buses tillDecember 2010. As per terms of BOTcontract the concessionaire was to payRs.430 per bus per month in the firstyear; and Rs.473 per bus per monthduring second year of the contract. Nosuch monies have been received. Afterwe raised the issue, DTCin January2011, raised the monthly concession feebill for 605 buses where completioncertificates had been issued, and alsoassured that liquidated damages wouldbe imposed on the firm.

26.2.5 Unjustified expenditure onconstruction of 60 Time KeepingBooths for the CWG

In December 2009, DTCBoard approvedconstruction of 26 modern design TimeKeeping Booths (TKB) at important CWGlocations, at an estimated cost of Rs.66.88lakh; the number was increased to 60 at theinstance of the Minister of Transport.Initially in February 2010, tenders wereinvited at an estimated cost of Rs. 1.48crore; which was increased to Rs. 2.03 croreon the ground of increase in scope of thework vis. fixation of LEDboard andinstallation of advertisement boxes. Workwas awarded to SMF Display System (India)Pvt. Ltd. in May 2010 with a stipulation tocomplete it in 120 days.

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DTC's time keeping booth

We found that civil work had beencompleted only in respect of 48 kiosks up to03 October 2010, before the start of CWG-2010 and electric connection had beeninstalled only in 10 kiosks.

Time Keeping Booths have been a part ofthe city transport management andcontrol system, primarily for enforcingpunctuality of bus operation. The staffdeployed in the TKBs regulate busoperations, curtail or divert busoperation as per requirement of public,and also disseminate bus transportrelated information to passengers andtourists. In our opinion, the project ofconstruction of these kiosks at a cost ofabout Rs.3 lakh each all over the cityappears to be an anachronism at a timewhen the buses are being fitted withGPS/ AVTS and the GNCTD isimplementing e-governance in a big way.

26.2.6 Ad hocism in methodologyadopted for construction of BusQueque Shelters (BQSs)

In a meeting held by the Chief Minister,GNCTDon 22 June 2006, it was decided toupgrade 1000-1500 BQSsin the city withmodern designs on Built, Operate andTransfer (BOT) basis for their upkeep andmaintenance. The concessionaire wouldgenerate revenue from display ofadvertisements on the BQSsand pay anagreed amount as Concession Fee toGNCTD. We found that for getting 1500BQSsconstructed before the Games, theDTCand the Transport Department resortedto various methods, which indicatedarbitrariness, adhocism and lack of clarity inimplementation of such a large project.From 2006 to 2010, 4 models ofconstruction of BQSshave been followed.Yet, only 472 BQSscould be completed sofar.The details of the various methods ofconstruction and our findings thereof aregiven below:



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Figure 26.1 - Different models of construction of BQS

May 2007 January 2010

Construction of BQSs Construction of BQSs I~on BOTmodel in four from GNCTD fundingsegments by DTCin 3 packages

only one segment of Only one package of248 BQSs 157 BQSs successfully awarded successfully awarded fto Green Delhi Pvt. to Ozone KLAJV forLtd at a concession Rs. 18.98 crorefee of Rs.93,800 perBQSper month 99 completedbefore CWG-2010

248 completed II before CWG-2010 I ~

April 2010 May 2010

Construction of BQ~ Construction byby DIMTS on BOT GNCTD fundingmodel on through DIMTSnomination basis Contract awarded on

nomination basis toDIMTS forconstruction of 800BQSsat a cost of Rs

250 BQSsawardedor a concession feeof Rs.9259 per BQSper month or 16 percent of earning, 97.70 crorewhichever, is higher I 50 completed before75 completed before CWG-2010CWG-2010 J

~ - - - - - - - - - - - - - - - - ~



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Table 26.2 - Main findings in respect of different models of BQS constructionModel

BOTfor construction of248 BQSsawarded toGreen Delhi BQSPvt. Ltd

Observations

Escrow account not opened by Green Delhi BQSPvt Ltd.,though contractually required; and

It had not paid the concession fee since March 2008following which DTCencashed its bank guarantee on twooccasions and recovered Rs. 13.31 crore. The total amountoutstanding from Contractor as on 30 September 2010 wasRs.28.77 crore.

DTCgave advertising space on 79 BQSscovered under theBOT contract to OC, instead of offering its own BQSs.Incidentally, OC specifically asked for these by enclosing alist and DTCagreed to OC's list without making any effort tooffer its own BQSs.

Construction of 157BQSs by Ozone KLA JV

The work could not be completed within the scheduled time ofseven months and till 30 September 2010, only 99 BQSswerebuilt;

DTCwas losing out on the revenue that it could have earnedfrom advertisements on these BQSs;and

As of November 2010, Rs. 13.62 crore had been paid to thecontractor by the DTCwhereas no funds have been receivedfrom the GNCTD.

Construction of 250BQSs by DIMTs on

The concession fee was based on a similar contract entered byNDMC (with JCDecaux) in 2006, when reference rates of 2007

BOT basis were available; The concession fee fixed for DIMTSof the higher of Rs.9259 or

16 per cent of earnings, is much lower than the BOT rate ofRs.93,800 per BQSper month fixed with Green Delhi BQSPvt.Ltd, JC Decaux offer of Rs.21,OOOand DTC's reserve price ofRs.20,OOOforBOT I.

DIMTS had not deposited the performance security asrequired and the department appointed an independentengineer to review the progress of work completed by theconcessionaire only in December 2010 and at the instance ofAudit also directed DIMTS to pay the concession fee in respectof the 75 completed BQSs.

Construction of 800 BQSby DIMTs on nominationbasis

Contract awarded despite the Finance Department'sprotestations of lack of funds;

Mandatory contractual provisions like depositing of bankguarantee and performance security not insisted upon;

Department of Transport released payments of Rs. 42 crore(excluding Mobilization funds of Rs. 10 crore) on demand toDIMTSwithout having the detailed bills duly scrutinised by theengineer asrequired in the contract agreement;



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Model Observations

No statutory deduction on account ofTDS (Rs.117.42 lakh),Worker Welfare Cess (Rs.57 lakh) were made at the time ofrelease of funds and collected only at the instance of auditfrom the subsequent payment of Rs.5 crore.

In the absence of funds, Rs.52 crore was made available by thedepartment from other plan schemes Major Head 5055 DD-1(3) (1) , Alternate mode of transport' and Major Head 5055DD-1(1) (4) 'Purchase of land for New BusTerminal'.

As can be concluded from above, notonly did the Government lose sight of itsobjective of creating 1000-1500 BQSsbetween 2007 and 2010, but, in its verybelated and frantic effort in 2010 tobuild them before CWG-2010, failed tosecure proper utilisation of public moneyor exploit the revenue potential of thescheme fully.

As is evident from the observations given inthe preceding paragraphs, DIMTS has beenunduly favoured, by being awarded anumber of consultancy contracts onnomination basis, despite being a nonGovernment Company. The major contractsawarded to it by DTCduring 2007- 2010 aresummarised below.

26.2.7 Award of various contracts to aDIMTS, a non-governmentCompany on nomination basis

Table26.3 - Award oj contracts to DIMTSParticulars of Work

Purchase of Buses

Types of contractand contract value

Consultancy (PMC)Rs.1.3 crore

Our Observations

DIMTS could not prepare the justified pricefor the low floor buses, citing reasons oflack of historical data and even delayedpreparation of bid documents.

LEDDestinationBoard in Standard Buses

Consultancy (BPM)Rs0.32 crore

DIMTS was appointed directly by Secretarycum Commissioner (Transport). WhenDTCrefused to pay more than Rs.16 lakhfor the work, the claim of DIMTS of Rs.32lakh was released directly by the TransportDepartment.

Construction of 500BQSsby DTC

Consultancy (PMC)1.55 crore

The DTCBoard had earlier decided tomake DIMTS BPM only and if it wasrequired, have a third party as PMC fortransparency. However, DIMTS wasappointed PMC and ex post facto approvalof Board taken.

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Particulars of Work Types of contractand contract valueCiting reason of urgency before theGames, GNCTD awarded the work ofconstruction of 800 BQSs(for Rs. 96.70

----------+------------l crore) from Government funding and 250BQSson PPPmodel to DIMTS, with severalfavours/relaxations mentioned inparagraph 26.2.5. The work was, however,not completed.

Construction (PPP)rojectof Constructionof 250BQSson PPPmodel allotted byDoTProjectof Constructionof 800BQSsbyDoT

Construction 96.70 crore

Our Observations

Frequent nomination of DIMTS byGNCTD is to be viewed in the context ofits legal identity. It is a joint venture ofGNCTD with IDFC (a private sectorcompany) with 50:50 share holding, andis not a Government Company as per theCompanies Act, 1956 provisions.Effectively, while it is engaged onnomination basis on the justificationthat it is a joint venture of GNCTD withChief Secretary, Delhi as its Chairman, itis not bound by any establishedGovernment financial procedures.Engaging DIMTS increasingly, onnomination basis tantamount to itsbeing used as a device to circumventgovernment procedures and controls.Unlike Government Companies whichcome under the audit preview of theComptroller and Auditor General ofIndia, all activities of DIMTS are outsideour audit purview. Hence, it isgrossly irregular of GNCTD to patronise itand accord undue favours to it on theplea that it has Government investment.

We had reviewed the execution of theBus Rapid Transit Corridor (BRTC) inparagraph 4.8 of our Audit Report onthe GNCTD for the year ended March2008. In this report, we hadcommented adversely on the need tohire DIMTS as supervision consultantsin addition to RITESwho was theProject Management Consultant andalso highlighted certain instances ofundue benefits to DIMTS. We hadalso reviewed the functioning of theTransport Department in paragraph4.1.6 of our Audit Report on GNCTDfor the year ended March 2009wherein we had commented on theirrational rate of fees for worksassigned to DIMTS, despite its being aprivate company. Our audits focusedon the Transport Department, sinceDIMTS was not in within our auditpurview.

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26.2.8 Construction of bus parking atAsh Pond opposite MillenniumPark

In October 2009, LG, Delhi on therecommendations of the Chief Secretaryand the CM, GNCTD, approved the proposalto develop Athlete Bus Parking Facility atthe Ash Pond opposite the Millennium Park.Thereafter, in December 2009, TransportDepartment sanctioned the work at anestimated cost of Rs.61 crore.We found that DTChad not obtained thenecessary approvals for the use of the landfrom the DDA, which was the land owningagency. The construction was in violation ofthe Master Plan for Delhi 2021 and theproposed" Zonal plan earmarks the area asbeing meant for recreation (green}'.In a recent reply to the Yamuna JiyeAbhiyaan and in reply to the auditobservation, the Secretary-cum-TransportCommissioner stated that all the structuresin the facility were semi-permanent innature and it would be necessary tocontinue to use the facility so long as theGovernment was unable to makealternative provisions for bus parking. InDecember 2009, LG, Delhi directed the DDAto place the matter to change the land useof this site for Bus Depot in the ZonalDevelopment Plan for Zone '0' before theAuthority.' DTCalso sent a letter to DDArequesting for change in land use.However, the fact remains that thestructure is violative of the zonal plan and

Although the zonal plan has been approved, thenotification is yet to be issuedPermitted recreational uses include green stretches, bio-diversity park, forest, botanical park/ herbal park,science park, theme park etc. without pucca /permanent construction

includes permanent structures likeworkshop, baggage scanning work, washingpit with underground tank, bituminousroad, boundary wall, sub station and highmast light costing about Rs.47.90 crore.

26.2.9 Creation of Park and Ride facilityat Safdarjung Airport by NOMC

In August, 2009, NDMC proposed thecreation of a Park and Ride and holdingfacility at Safdarjung Airport, as per theapproved traffic plan for CWG-2010. Thefacility was to cater to the traffic duringCWG-2010 events at JLN stadium andthereafter be dismantled. In October 2009,while approving the proposal for Rs. 31.25crore, EFCadvised the dismantling of assetsshould be kept at minimum. Of the expenditure of Rs.39.11 crore

incurred on creating the facility, Rs.24.93 crore was on assets some ofwhich have been dismantled and othersto be eventually dismantled; This is notin line with EFCapproval;

In addition pavers blocks costing Rs.10.91 crore, that were to be dismantledand reused by DTC,have still not beenremoved despite repeated request ofNDMC; DTChas not responded after theinitial assurance of July 2010 for liftingof paver blocks;

Signages were to be provided at anestimated cost of Rs. 2.17 crore for theGames period. Providing steel!aluminium signages for the shortduration of Games period appears to beunjustified;

Rs.0.13 crore were also paid to CRRIand Design Action Group forconsultancy services. This was

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unjustified as the nature of work waslaying roads and interlocking paverblocks, which are commonly executedworks in Delhi and GNCTD had objectedto this expenditure;

Though the contractor (KRAnand)delayed the execution of work by 70days, liquidated damages of Rs.0.92crore were not levied on the plea ofdelay due to VVIP movements atairport; however the hindrance registershowed only 5 X days of delay due toVVIP movements and the major reasonrecorded was rains. That does not holdgood since the works were initially to becompleted in mid- July, before the onsetof monsoons;

The contractor (Mis Fiber Fill) engagedfor constructing public utility serviceswas technically ineligible at the time ofopening of financial bids. The requiredexperience certificate was received postopening of financial bids; and otherbidder (KRAnand) who was otherwiseeligible, was declared ineligible; and

DCEwas engaged TPQIA on offer basisfor a fee of Rs.0.38 crore, but noagreement determining its scope ofwork and terms of payments linked tomilestones achieved by the contractorswas signed. DCEwas paid Rs. 3.58 lakhsin excess of 1 percent of tendered costas sanctioned by EFC.

26.3 Power Services26.3.1 Power GenerationThe CWG period (October) was a leanseason in terms of power demand in Delhi.Nevertheless, GNCTD planned tocommission a new power plant at Bawana

to make available 1250 MW of powerbefore the Games, on the grounds ofincreasing dependence on own generationsources from the current 17 per cent to 50per cent. The target was however not met,as the 1500 MW Bawana gas based powerproject was delayed (by eight months as ofOctober 2010, despite an expenditure ofRs.2330 crore) for the following reasons. After the Pragati Power Company Ltd (a

GNCTD PSU) put up a proposal for theproject in 2003, the Cabinet of GNCTDfinally approved the setting up of the1000 MW power plant at Bawana undergovernment execution only inNovember 2006. GNCTD took overthree years to decide whether theproject should be Government funded,private funded or a PPP,as also whetherto set up two power plants at Bawanaand Pragati Maidan or a single plant atBawana.

The turnkey contractor, BHEL,who wasawarded the work in April 2008, couldnot reportedly mobilise adequateresources at the site.

Consequently, the Ministry of Powerallocated additional power supply of 100MW to GNCTD for the CWG period (aftertaking into account internal and externalsources of power) from the unallocatedpower of the central generating stations ofthe Northern Region.

26.3.2 Power TransmissionThe total capacity of 220 KVAelectrical sub-stations was targeted to be increased from6920 MVA in 2009-10 to 12,340 MVA by2011-12. As a first priority, Delhi TranscoLtd. (DTL), a GNCTD PSU,took up projects ofsetting up five 220 KVAelectrical sub



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stations (AIIMS, Ridge Valley, Electric Laneand Masjid Moth and Airport Complex) and7 corresponding cabling projects in southand central Delhi, to strengthen the powersupply position for completion in time forthe Games.Most of these projects were awarded verylate (in the second half of 2009) and couldnot be completed before the Games. Onlytwo (Ridge valley and Airport complex,) outof five sub-stations were completed andtwo (Ridge Valley to Naraina and BamnauliMehrauli (LiLO at Airport complex) out ofseven cabling projects had been completed.Reasons given by DTLfor delay includednon-availability of land and permission forcutting trees from the Forest Department;clearances from GAIL and other civicagencies, unprecedented rains, trafficpermissions etc. These delays, togetherwith delayed award, made delayedcompletion almost inevitable.Further, the contract award process was nottransparent, as DTL had applied conditionsinconsistently to award contracts tofavoured parties. In the contract for establishing the 220

KVAsub-station at Ridge Valley, DTL

considered the cost of type test forevaluation of financial bids, but waivedthe type test for the L-l bidder,Hyosung, Korea. If the type test had notbeen considered for evaluation offinancial bids, then Areva, France wouldbecome the L-l bidder and Hyosung L-2.DTL's claim that the type test conditionwas added for being applied to firmswho had not supplied the equipment inIndia previously is not tenable since thiscondition should have been statedupfront in the RFP. In any case Areva,France had already supplied equipmentearlier in the country.

In the contract for the 220 KVsub-station at Airport complex, DTL includeda restrictive clause in the contractstating that the completion period forthe contract should be 12 months inview of CWG-2010, when the previouslyawarded Ridge Valley stipulated acompletion time of 18 months.Accordingly, Areva was rejected as it hadstated a completion period of 18months. Here too, Hyosung was the L-lbidder, but actually took 21 months tocomplete the project.

cag's cwg audit report - chapter - 26 (2011)

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