CAG raps BMC for BRIMSTOWAD delay

The Comptroller and Auditor General (CAG) has pointed to massive delays and cost escalations in the implementation of the BMC's ambitious Brihanmumbai Storm Water Drainage System (BRIMSTOWAD) project, which is aimed at easing flooding in Mumbai during the monsoons.

What is the issue?
Mumbai receives an average rainfall of 2,400 mm but the storm water drain (SWD) system is over 100 years old and designed for lower intensity of rains. After torrential rains in 1985, the BMC appointed consultants to study the SWD system and in their BRIMSTOWAD report submitted in 1993, the consultants recommended improvements. Mumbai received massive rains in July 2005 which brought it to a standstill and the state appointed a fact finding committee (FFC) to analyse the factors and suggest remedial measures. The BMC also appointed consultants to update the original BRIMSTOWAD report. Based on the FFC's recommendations, the BRIMSTOWAD works were undertaken by the BMC at a cost of Rs1,200 crore, and this entire cost was sanction by the Centre.

What did the CAG say?
In its audit report on local bodies for the year ended March 2013, which was submitted to the legislature on Wednesday, the CAG pointed out that "The implementation of Brihanmumbai Storm Water Drain project by MCGM (BMC) was beset with delays and cost escalation. The project management and implementation was weak and there were lapses in internal controls.

How much of the project is complete?
"As of September 2013, the actual expenditure incurred on the project was Rs1,764.55 crore against the approved DPR (detailed project report) cost of Rs1,175.72 crore but only 27.6% of the works under the project could be implemented. The project is under revision and the revised cost of the project is estimated to be Rs3,884.61 crore i.e. a cost overrun of Rs2,708.89 crore. Due to delay in implementation of the project, flooding in Mumbai city and suburban areas continues," the report noted.

What are the shortfalls pointed out?
The CAG's audit detected significant shortfalls in implementation like only one work of rehabilitating old SWD system being completed by September 2013 at a cost of Rs48.74 crore against sanctioned cost of Rs20.54 crore as against seven works which were to be completed. Of the eight storm water pumping stations which were clubbed into four works, work on setting up just two pumping stations were completed in March 2010 and April 2010. Work on two pumping stations were in progress as of September 2013 and setting up of the remaining four pumping stations was not undertaken due to non-selection of sites. Non-removal of encroachments, irregular diversion of funds, unfruuitful expenditure due to change of site, irregular payment of transportation charges, non-renewal of bank guarantees, non-recovery of mobilisation advances, were some other irregularities which were detected.

What are CAG recommendations?
The report recommended that the BMC may ensure that the project is implemented economically and with minimum delay, contracts may be awarded after ensuring availability of sites clear of encroachments and encumbrances; and all requisite surveys, investigations and studies of the work sites may be conducted before tendering the works.
"Significant delays in implementation of the project led to cost escalations and shortfalls in achievement of targets. As a result, MCGM in March 2012 submitted a revised DPR to GoI for implementation of Phases-I and II at a revised capital cost of Rs3,884.61 crore, which has not been approved by GoI as of September 2013. The MCGM also revised the time-line for the project from November 2014 to May 2015. As per the revised DPR, the project cost stands escalated to Rs2,708.89 crore i.e. an increase of 230.40% over the initial estimates," the report pointed out.