New Delhi: Lieutenant Governor VK Saxena has approved a proposal for a CVC probe into a massive cost escalation of Rs 670 crore in the construction of a new block of the Delhi government's Lok Nayak Hospital, officials at the Delhi government's office said on Tuesday. LG, prompting Health Minister Saurabh Bharadwaj to criticize the former for simply ordering consultations.
Saxena has also constituted a committee to examine procedural violations that led to cost hike to the tune of Rs 670 crore. The committee, which will submit its report in two months, will also examine all ongoing projects in different government hospitals in Delhi, they said.
When asked about the direction of the LG, Bharadwaj in a press conference said: "The job of the LG is to order queries day and night. What other work has he done for Delhi? The Vigilance department is under him. He does for the media to ask questions."
A tender worth Rs 465 crore for construction of an additional block at Lok Nayak Hospital has been raised to Rs 1,135 crore, thereby creating an unauthorized liability of about Rs 670 crore for the Delhi government, the LG said in an official note.
The LG has asked the Vigilance Directorate to ask the Central Vigilance Commission (CVC) to constitute a special team of chief technical examiners to conduct a detailed technical examination of the matter, officials said.
"It is unjustifiable that such cost overruns have occurred at the level of the department's own engineers, although they should have resorted to the Department of Finance and the Cabinet," the LG states in his note.
Work on the new block of Lok Nayak Hospital was scheduled to begin on November 4, 2020 and be completed in 30 months.
"However, even after three and a half years, the current progress of works is only 64 percent, even though costs have increased by 243 percent," officials said.
The Health department of the Delhi government had assigned the project to the Public Works Department (PWD). However, the work originally tendered for Rs 465 crore was met with re-estimates and an extension of the scope of work for a whopping Rs 1,135 crore, they said.
The PWD attributed the additional cost to the increase in the scope of work, officials said.
The LG wrote to the Prime Minister on June 22, 2023, pointing out reports of "inordinate delays" in hospital projects highlighting excessive costs running into thousands of rupees.
The LG said in his note that he had observed a conflict between the PWD and the private construction company in charge of the works. An arbitral tribunal constituted to resolve the dispute gave an award of Rs 82.45 million in favor of the contractor.
However, the department (PWD) decided not to challenge the award, further increasing the financial burden, he said.
"The loss to the treasury and public money due to procedural violations and unauthorized liability is a very serious matter that deserves immediate and thorough investigation. Accordingly, I approve the proposal to request the CVC to constitute a special team of examiners technical chiefs to carry out a detailed technical examination in this matter," the LG said in his note.
He also ordered formation of a four-member committee to carry out a detailed examination of the matter which will be headed by retired IAS officer BK Prasad.
Saxena has also constituted a committee to examine procedural violations that led to cost hike to the tune of Rs 670 crore. The committee, which will submit its report in two months, will also examine all ongoing projects in different government hospitals in Delhi, they said.
When asked about the direction of the LG, Bharadwaj in a press conference said: "The job of the LG is to order queries day and night. What other work has he done for Delhi? The Vigilance department is under him. He does for the media to ask questions."
A tender worth Rs 465 crore for construction of an additional block at Lok Nayak Hospital has been raised to Rs 1,135 crore, thereby creating an unauthorized liability of about Rs 670 crore for the Delhi government, the LG said in an official note.
The LG has asked the Vigilance Directorate to ask the Central Vigilance Commission (CVC) to constitute a special team of chief technical examiners to conduct a detailed technical examination of the matter, officials said.
"It is unjustifiable that such cost overruns have occurred at the level of the department's own engineers, although they should have resorted to the Department of Finance and the Cabinet," the LG states in his note.
Work on the new block of Lok Nayak Hospital was scheduled to begin on November 4, 2020 and be completed in 30 months.
"However, even after three and a half years, the current progress of works is only 64 percent, even though costs have increased by 243 percent," officials said.
The Health department of the Delhi government had assigned the project to the Public Works Department (PWD). However, the work originally tendered for Rs 465 crore was met with re-estimates and an extension of the scope of work for a whopping Rs 1,135 crore, they said.
The PWD attributed the additional cost to the increase in the scope of work, officials said.
The LG wrote to the Prime Minister on June 22, 2023, pointing out reports of "inordinate delays" in hospital projects highlighting excessive costs running into thousands of rupees.
The LG said in his note that he had observed a conflict between the PWD and the private construction company in charge of the works. An arbitral tribunal constituted to resolve the dispute gave an award of Rs 82.45 million in favor of the contractor.
However, the department (PWD) decided not to challenge the award, further increasing the financial burden, he said.
"The loss to the treasury and public money due to procedural violations and unauthorized liability is a very serious matter that deserves immediate and thorough investigation. Accordingly, I approve the proposal to request the CVC to constitute a special team of examiners technical chiefs to carry out a detailed technical examination in this matter," the LG said in his note.
He also ordered formation of a four-member committee to carry out a detailed examination of the matter which will be headed by retired IAS officer BK Prasad.
