CAG Exposes Maharashtra's Road Project Financial Mismanagement

The Comptroller and Auditor General of India revealed financial mismanagement in Maharashtra's road projects, noting an unwarranted expenditure of Rs 297.97 crore due to flawed project specifications and preparation deficiencies. The audit also highlighted delays in payments, excessive insurance charges, and insufficient monitoring, alongside improved connectivity in some areas.

The Comptroller and Auditor General of India (CAG) has uncovered significant financial discrepancies in Maharashtra's road projects executed under the Hybrid Annuity Model (HAM). The report, presented in the state's legislative assembly, flagged an unwarranted expenditure amounting to Rs 297.97 crore due to over-engineered specifications and inadequate project preparation.

Key issues identified included miscalculated construction costs leading to avoidable expenses, improper Detailed Project Report (DPR) provisions, and delays in milestone payments resulting in additional interest costs. Moreover, there was unrealistic loading of insurance charges and late appointment of project safety consultants, which increased the financial burden.

Although some projects improved regional connectivity, such as reducing travel time for the Ashta-vinayak pilgrimage, the CAG emphasized the need for accurate project estimation, timely financial allocation, and enhanced oversight to ensure adherence to agreements and avert future financial mishaps.

(With inputs from agencies.)