Nagaland: 15 Years and Rs 58cr Later...

Visitors are seen on the sidelines of the under-construction Multi-Disciplinary Sports Complex, Dimapur on March 14. Originally slated to be completed in 2009, the works for the stadium started in 2005 is yet to be completed. (Morung Photo)

Visitors are seen on the sidelines of the under-construction Multi-Disciplinary Sports Complex, Dimapur on March 14. Originally slated to be completed in 2009, the works for the stadium started in 2005 is yet to be completed. (Morung Photo)

NLA Panel demands status report on Multi-Disciplinary Sports Complex by April 15

Moa Jamir
Dimapur | March 14

Over 15 years since the project was first initiated, the ongoing works of the Multi-Disciplinary Sports Complex, Dimapur might see some ‘action’ after a scathing observation and direction from the Public Account Committee (PAC) 2020-2021 in its 123rd Report. 

Among others, the PAC recommended the Department of Youth Resources and Sports (DYRS) to make “strenuous effort to complete the remaining works” and ensure that the project completes without “further loss of time” and escalation of cost.

“A status report to that effect should be submitted to the Committee along with a  copy of constitution of the High Power Committee within 2 (two) months from the date of presentation of this Report to the House,” directed the PAC headed by K Tokugha Sukhalu in its 123th Report. 

“Further, excuses given by the Department shall not be accepted,” added the PAC, in its report presented to the Nagaland Legislative Assembly on February 15.

The Committee made the recommendations while examining matters relating to the Comptroller & Auditor General (CAG) of India for the year 2014-2015 on ‘State Finances Audit Report’ (SFAR) and ‘Audit Report on Social, Economic, Revenue and General Sectors.’

The CAG Report was presented to the NLA on March 18, 2016 and first taken up by the PAC 2018-2019 which held Oral Evidence with Departmental Representatives from July 17-19, 2018. The current PAC (2020-2021), constituted on February 15, 2020, took up the same and adopted the 123rd Report on December 16, 2020.

Over 15 years in the making  
According to the aforesaid CAG Report, the DYRS took up the project in a phased manner in December 2005.  The 1st phase - construction of boundary - was completed in 2007. For an estimated cost of Rs 13.40 crore, the second phase – development of playground and site grading - was simultaneously started in December 2005 and physical progress of 83% was achieved incurring Rs 10.78 crore.

In the 3rd phase, Detailed Project (DPR) for Civil and allied works for main athlete stadium with seating capacity of 30,000 people was prepared and awarded in December 2006 to M/S NN Construction and Décor for Rs 55.28 crore.

As per the “terms and conditions,” the work was to be completed by June 2009 and no “enhancement of rate other than price escalation (as per RBI index) in accordance with CPWD’s Clause No. 10 CC was admissible.” 

The work actually commenced in January 2008. 

It was further stated that the Government of Nagaland (GoN) released Rs 58 crore at regular interval during 2009-13.

The estimated cost was however revised to Rs 134.99 crore from Rs 60.57 crore and approved by the GoN in March 2012. 

CE, PWD (Housing), while proposing the revision of cost,  cited escalation of material cost since 2008 and insufficient provision of fund to settle the claims of the contractor.

The CAG, however, observed that there was no record to substantiate the ‘payment was not made to contractor due to paucity of funds.’ 

DYRS also paid Rs 5.576 crore to contractors towards price escalations in five RA Bills, it said, adding that even after the extension of time, only 55% physical achievement could be attained delaying completion of work.

Joint inspection (May-June 2015) revealed that the work was stopped since December 2012 and even after Rs 58 crore, the complex is non-functional, the CAG noted. 

The Department in its reply to the CAG stated that the revision was necessitated for electrical work, seating gallery stands, plain cement flooring skirting, exterior plastering, additional seating and roofing areas. 

DPR sans electricity approved 
Based on the CAG audit report, the PAC examined the reasons behind revision of estimated cost to Rs 134.99; completion of 55% only; and stoppage of work since 2012. 

During oral evidence, the DYRS stated that price escalated as cost of electrical work and exterior plastering was not taken into account in the original DPR, in addition to others stated its earlier reply to CAG.

The Department also informed that the work has resumed though the progress of the work is slow “due to irregular pattern of funding,” and said that it “has not received any funding for the last 4 financial years.”

During the inquiry, the Department also stated an investigation by a Special High Level Committee constituted by GoN revealed that original DPR was at “fault and non-inclusion of certain items like electrical works, exterior plastering and plain cement flooring-skirting” were the reasons behind cost escalation.

‘Staggering’ cost escalation unacceptable 
In its observation/recommendation, the PAC noted that it is yet to receive a copy of constitution of the High Power Committee, supposed to be submitted within a week post evidence hearing in July 2018.

“Had the Department been more sincere in their work the Sports Complex would have been completed by now,” the PAC observed adding that the former also had not been up to date regarding the funding. 

“The Committee cannot accept the staggering increase of 123% in the cost of project shown in the revised estimate and therefore caution the Department not to mislead the Committee” (sic), it added. 

Consequently, the PAC directed to DYRS to submit copy of constitution of the HPC and a status report of the project by April 15, i.e. within 2 months from the date of presentation is report to the NLA on February 15.