financetom
Economy
financetom
/
Economy
/
Centre saved 12% in construction cost of Dwarka Expressway, claims Road Transport Ministry official: Report
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Centre saved 12% in construction cost of Dwarka Expressway, claims Road Transport Ministry official: Report
Aug 17, 2023 10:16 AM

The Central government saved nearly 12 percent in the construction cost of Dwarka Expressway, claimed a senior official of the Ministry of Road Transport and Highways, days after the Comptroller and Auditor General (CAG) flagged a nearly 14-fold increase in the budget of the project, according to reports.

Share Market Live

NSE

Top sources within the Road Transport Ministry have confirmed that the findings by the CAG regarding exorbitant costs are misconstructed and that the actual expenditure was significantly lower than estimates, news agency PTI reported.

Initially, the CAG's findings had emphasised the National Highways Authority of India’s (NHAI) decision of an elevated roadway on the Dwarka Expressway's Haryana section. The report said that this choice led to an escalation in the construction cost, soaring to Rs 251 crore per kilometre from the estimated cost of Rs 18.2 crore per km.

PTI sources from the ministry revealed that these figures lack proper context. They clarified saying that all four contracts for the Dwarka Expressway were put out for tender at an average civil cost of Rs 206.39 crore per kilometre. Ultimately, the contracts were awarded at a substantially reduced rate of Rs 181.94 crore per km, which reflects a 12% reduction from the estimates.

A senior official of the ministry said that the project was awarded after a “transparent” bidding process, according to a Hindu report.

The ministry sources further highlighted the fact that the CAG's calculation method oversimplifies the complexity of the project. They said that the CAG divided the total construction cost of Rs 91,000 crore under the National Corridor Efficiency Programme by the entire length of 5,000 km under development. The ministry, on the other hand, claims that this methodological disparity does not account for elements such as flyovers, elevated roads, underpasses, tunnels and ring roads as these additional components contribute significantly to the overall construction cost and were not originally included in the project.

Notably, the expressway’s design includes an eight-lane 3.6 km tunnel, a six-lane 2.4 km tunnel connecting to Delhi's airport and elevated service roads at crucial interchanges. According to the ministry officials, these aspects justify the cost variations.

According to the PTI report, the ministry intends to communicate its perspective to the CAG and present its views when the issue is brought up for discussion before the Public Accounts Committee.

Meanwhile, on Monday, August 14, the Opposition parties accused the Modi government of record-breaking corruption in light of the CAG's findings.

(Edited by : Sudarsanan Mani)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed's Standing Repo Facility hits record high as policy meeting outcome looms
Fed's Standing Repo Facility hits record high as policy meeting outcome looms
Oct 29, 2025
NEW YORK (Reuters) -The Federal Reserve's Standing Repo Facility on Wednesday recorded the highest level of usage since its launch in 2021, as central bankers are widely expected to announce an end to their balance sheet drawdown. Eligible financial firms took slightly over $10 billion in loans from the facility, widely known as the SRF. Collateralizing that borrowing was $2...
Federal shutdown could cost US economy up to $14 billion 
Federal shutdown could cost US economy up to $14 billion 
Oct 29, 2025
WASHINGTON (Reuters) -The federal government shutdown could cost the U.S. economy between $7 billion and $14 billion, shaving up to 2% from gross domestic product in the fourth quarter due to the lapse in government spending, the nonpartisan Congressional Budget Office said on Wednesday. The partial shutdown was in its 29th day on Wednesday with no end in sight, as...
Analysis-US government shutdown may prompt first-ever workaround for inflation-protected bonds
Analysis-US government shutdown may prompt first-ever workaround for inflation-protected bonds
Oct 29, 2025
NEW YORK (Reuters) -With the U.S. government shutdown threatening to freeze October's inflation report, the Treasury is expected to deploy a workaround to compute the index underpinning the $2.1 trillion market for inflation-protected bonds for the first time since their 1997 launch, a move that may cause pricing quirks as traders adjust their calculations. The Bureau of Labor Statistics has...
Looming Trump-Xi meeting revives hope of US-China trade truce
Looming Trump-Xi meeting revives hope of US-China trade truce
Oct 29, 2025
BUSAN, South Korea (Reuters) -As U.S. President Donald Trump and China's leader Xi Jinping prepare to kick off talks on Thursday, U.S. negotiators have signaled they seek a return to a fragile trade war truce, but tensions remain high and longer-term economic irritants will likely persist between the geopolitical rivals. Trump has repeatedly expressed optimism about reaching a deal when he...
Copyright 2023-2025 - www.financetom.com All Rights Reserved