Ministry Sources Respond Calmly to CAG Report’s Construction Cost Concerns on Dwarka Expressway

New Delhi, August 16, 2023: Highly placed sources within the Ministry of Road Transport and Highways have offered a measured response to the recent Comptroller and Auditor General (CAG) report that highlighted a significant divergence in the construction cost of the Dwarka Expressway.

Ministry’s Perspective

The sources within the ministry have shed light on several key factors that contribute to the apparent cost discrepancy in the CAG report:

1. Outdated Reference: The ministry sources have pointed out that the basis of the CAG’s findings rests on an outdated reference note dating back to 2017. Moreover, the Cabinet Committee on Economic Affairs (CCEA) note was tailored for 2 and 4-lane configurations, which contrasts with the intricate tunneling and multi-layered design of the Dwarka Expressway. The quoted Rs 18.20 crore per km is not an approved cost but rather an estimated projection.
2. Project Scope Clarification: The cost comparison from 2017 was not intended for the Dwarka Expressway but was rather earmarked for a 5000-kilometer general highway under the Bharatmala-1 project. This particular segment was part of the National Corridor Efficiency Improvement initiative aimed at bolstering the capacity of existing highways. The civil cost for the 5000-kilometer highway was Rs 91,000 crore.
3. Unique Nature of Project: The Ministry sources emphasize that the Dwarka Expressway is an entirely new infrastructure project. The CAG’s calculation of Rs 18.2 crore per km disregards the unique nature of the project, which is outlined explicitly in the CCEA note.
4. Expressway Details: Notably, the Dwarka Expressway spans 28.96 kilometers and comprises an 8-lane configuration.
5. Project Complexity: With over 20 tunnels integrated into its design, the Dwarka Expressway’s complexity surpasses typical projects.
6. Layered Design: In a substantial segment of the expressway, there are four layers/levels, with tunnels underneath and elevated branches at three levels for lateral navigation.
7. Estimated vs. Actual Cost: The ministry has indicated that while the estimated cost stood at Rs 206 crore per km, the actual cost incurred was Rs 181.84 crore per km, reflecting prudent financial management by the ministry.
8. Allocation to Tunnels: A significant portion of the total cost has been apportioned for tunnel construction.
9. Impact of Land Acquisition: The ministry acknowledges that land acquisition challenges have contributed to cost fluctuations.

Ministry’s Commitment to Transparency

The sources also acknowledged a minor procedural misstep by the ministry in responding to the CAG’s inquiry about costing. Despite the slight delay, the ministry assures that a comprehensive response will be provided to the CAG. Additionally, Cabinet approval will be sought, and the Public Accounts Committee will be engaged for further clarification.

Transparent Tendering Process

The ministry asserts that the tendering process for all four packages of the Dwarka Expressway was competitive and conducted with utmost transparency.

Long-Overdue Project

The Ministry sources have reiterated the prolonged delays in the Dwarka Expressway project, attributed to its intricate design and protracted negotiations between Delhi and Haryana.

This nuanced response from highly placed sources within the Ministry of Road Transport and Highways underscores the ministry’s dedication to clarifying the intricacies of the project’s financial dynamics.