Why is the PAC Criticizing NHAI and Demanding a Major Audit?
Synopsis
Key Takeaways
New Delhi/Thiruvananthapuram, Aug 12 (NationPress) The Parliament's Public Accounts Committee (PAC) has issued a strong condemnation of the National Highways Authority of India’s (NHAI) operations in Kerala, calling for an extensive audit of its practices.
PAC Chairman and Congress's Alappuzha MP K.C. Venugopal stated that a decision was reached to conduct a CAG audit following a thorough examination by the PAC.
The PAC's latest report, presented in Parliament, outlined several recommendations.
The committee emphasized the importance of inclusive consultations during the design phase of highway projects, involving Members of Parliament, other public representatives, and regional experts.
Notably, the report highlighted that the NHAI had acknowledged a design flaw at Kooriyad in the Malappuram district.
The PAC has called for stringent actions against officials accountable for these discrepancies.
Moreover, it urged that companies found negligent be blacklisted and prohibited from future contracts.
Concerns were also raised regarding the awarding of subcontracts at significantly lower amounts compared to the original tenders.
For instance, it was revealed that the Kadambattukonam–Kazhakootam segment of the National Highway was awarded for Rs 3,684 crore, but subcontracted for merely Rs 795 crore.
A comprehensive review of Kerala’s highway projects indicated that, on average, subcontracts represented only 54 percent of the original tender value.
This stark disparity, the committee warned, could jeopardize quality and accountability.
The PAC recommended that the Ministry of Road Transport and Highways conduct a detailed assessment of subcontracting practices.
Additionally, it underscored the necessity for the NHAI to establish an internal system for preparing and approving project designs, ensuring quality control from inception to execution.
In a pivotal reform suggestion, the PAC proposed the creation of a dedicated regulatory authority to set toll rates.
This body, it argued, would promote enhanced transparency and fairness in toll collection, addressing public complaints regarding high or arbitrary charges.
The findings of the report are likely to escalate scrutiny of highway development in Kerala, where challenges related to land acquisition, design disputes, and quality concerns have frequently stalled projects.
Interestingly, the NH-66 project has been under examination since May this year, following the collapse of sections of the under-construction highway across three districts.
Both state Public Works Minister P.A. Mohammed Riyas and Chief Minister Pinarayi Vijayan faced backlash, particularly from Venugopal, who conducted an on-site inspection after the highway's collapse. Venugopal accused Vijayan of taking credit for the project prior to its failure and then neglecting to visit the site despite being in Malappuram for two days.
In June, in an attempt to mitigate political fallout, Vijayan and Riyas hastily traveled to Delhi and obtained an assurance from Union Road Transport and Highways Minister Nitin Gadkari that the damaged sections would be reconstructed, with the entire project completed on schedule—intended as a "New Year gift" for Kerala.
Now, with the PAC advocating for an immediate CAG audit, the political rivalry is set to intensify.