CAG Flags Irregularities In Mumbai Coastal Road Project: Safety, Cost & Tendering Under Scrutiny

A year after the inauguration of Phase 1 of the Mumbai Coastal Road — a 10.5-km high-speed corridor linking Nariman Point to the Bandra-Worli Sea Link — a draft audit report by the Comptroller and Auditor General (CAG) has raised serious concerns regarding financial management, safety protocols, and construction quality between 2020 and 2024.

Prepared by the Principal Accountant General (Audit I), Maharashtra, and submitted to the Brihanmumbai Municipal Corporation (BMC) in July 2024, the draft report highlights operational lapses, including the failure to complete safety tests prior to the road’s inauguration and questionable post-construction practices.

Despite claims by BMC that all construction quality norms were followed, the CAG report indicates otherwise. Notably, the road was opened to the public on 19 February 2024, by Prime Minister Narendra Modi, without completing key components like Testing and Commissioning and implementing Operation and Maintenance protocols during the Defect Liability Period (DLP).

Within three months of launch, seepage was detected in the southbound tunnel walls due to issues in expansion joints. The CAG draft claims that the BMC opted for a temporary fix using cement injections rather than addressing the root cause, raising questions about construction integrity.

Additionally, a pedestrian underpass (PUP) at Haji Ali flooded during a 4.9-metre high tide in the 2024 monsoon, highlighting gaps in drainage and planning.

The report criticises the BMC for bypassing tender protocols in awarding contracts. In one instance, the Traffic Management Control System (TMCS) contract for the Marine Drive–Priyadarshini Park stretch, valued at Rs 80.83 crore, was awarded directly to the existing consultant without competitive bidding. This, according to the audit, violated both BMC’s internal guidelines and Maharashtra government directives, offering undue advantage to contractors.

The CAG draft also flagged an excess payment of Rs 147 crore to contractors after the GST rate increased from 12% to 18%. According to the tender conditions, such tax fluctuations were to be absorbed by the contractors. However, BMC defended its decision, citing legal and administrative approvals, which the audit body rejected as unjustifiable.

In addition, construction delays and price escalations plagued the development of two car parks at Amarsons Garden and Haji Ali. Originally estimated at Rs 107.95 crore in 2018, the project’s cost rose by Rs 27.91 crore by early 2024, breaching the permissible 20% price variation clause. Despite Supreme Court orders in 2022 to complete construction alongside the Coastal Road, progress remained minimal, with visible construction debris still at the sites.

The BMC attributed delays to opposition from local residents and claimed work had commenced, but the CAG insisted the explanation was untenable, citing further potential cost hikes due to inflation in material rates.

A significant point of contention in the report is the Rs 922 crore cost escalation due to a design change for a bridge in Worli. The bridge’s navigation span was increased from 60 metres to 120 metres following demands from local fishermen, leading to the adoption of a more expensive “bow-string” design.

The CAG questions the justification of this expansion, pointing to inconsistent expert opinions and the Fisheries Department’s earlier approval of a smaller span. The audit notes that since boats can navigate through the 29-metre span of the Bandra-Worli Sea Link, a 60-metre span should have sufficed.

Though not making any official statement, senior BMC officials confirmed that they had presented detailed rebuttals to the CAG during a meeting last month. “We have addressed all points raised in the audit and have submitted our written responses. The CAG has assured that our statements will be considered in the final report,” one official said.

The civic body maintains that the report has overlooked certain ground realities and that several observations may not be accurately presented.

Source: The Indian Express

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