CAG blames Delhi airport Metro link operator
New Delhi- The Comptroller and Auditor General (CAG) alleged that the Delhi airport Metro link operator is involved in various misdeeds related to the project, flouting government norms and making huge financial benefits.
In a draft report, CAG has mentioned that the Delhi Airport Metro Express Line (DAMPEL) has been puzzled with concessions to DAMPEL, the joint venture between Reliance Infrastructure and Construccionesy Auxiliar de Ferrocarriles, SA (CAF) of Spain.
CAG has reported that the DAMPEL has got “undue benefits” on waived customs duty and investment of funds from an escrow account for the project to various Reliance ADAG group mutual funds without proper disclosure.
The CAG has told that based on DMRC‘s recommendation, DAMEPL got customs duty concessions on imports of capital goods worth Rs 990 crore. The amount waived off is estimated to be Rs 29.56 crore and this should not have been extended to DAMEPL.
There was an escrow account for the project from which DAMEPL has released Rs 285.43 crore to “various subsidiaries of M/s Reliance Infra Limited”, without giving any details of the transactions.
The company failed to complete two of its proposed stations – Dhaula Kuan and Aero City, before the scheduled deadline because of which Delhi Metro had to incur a loss of Rs 2.25 crore. The private concessionaire was supposed to be penalized for this delay with a penalty of Rs 1.66 crore.
CAG alleges that DAMEPL started violating norms from the beginning of the project itself. According to the norms made by Centre, all infrastructure projects on PPP mode costing over Rs 100 crore should compulsorily be evaluated by the PPP Appraisal Committee (PPPAC). But this project was not routed through the committee even though the estimated cost was above Rs 3,000 crore, said the report.
The CAG report also points out “violation of its own guidelines” by the government. The project was approved with DAMEPL having to contribute only 46.17% of the project cost through its equity and debt, and the government had to provide the remaining fund. But though the norms were set by the finance ministry, it allowed only 40% government assistance to the project.
The CAG report points out many such violations and irregularities of the company with respect to the Delhi Metro project.
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