CAG pulls up RIL for delay in work on Pune-Satara road, toll diversion.

In its latest report, the Comptroller and Auditor General (CAG) of India has pulled up PS Toll Road Pvt Ltd. - a special purpose vehicle (SPV) of Reliance Infrastructure Ltd. - for tardy progress in six-laning of the Pune-Satara stretch of the National Highway. The work initially supposed to have been completed by March 2011, was only 65 per cent complete till September 2014, the report states, and points out that of the Rs. 542 crore toll collected, Rs. 225 crore was invested in Reliance mutual funds in contravention of the contract.

The work on expansion of the 140-kilometre Pune-Satara stretch of the National Highway-4 from four to six lanes - later supposed to have been completed by October 2011 - was awarded to PS Toll Road Ltd. which began work in October 2010.

A CAG report tabled in Parliament presents a detailed audit of various construction projects undertaken by the National Highways Authority of India (NHAI), where contracts were awarded to private infrastructure companies.

The CAG report states, 'The concessionaire (PS Toll Road Pvt Ltd.) failed to achieve the first project milestone (March 30, 2011) as well as the second milestone (October 1, 2011)… 90 days of grace period was given from dates assigned to each milestone. NHAI had handed over 85 per cent of unencumbered land on the appointed date. The concessionaire commenced collection of toll from the appointed date and continued to collect it though it failed to achieve the first or second milestone or commence work as per CA (concessionaire agreement).'


THE INDIAN EXPRESS