Faulty Planning: CUJ infrastructure projects suffer cost overrun by 900%

Call it administrative negligence or logistical challenges, several infrastructure development projects on the main campus of Central University of Jammu (CUJ) at Rahya Suchani (Bagla) have suffered cost overrun of a whopping up to 900 percent due to inordinate delay in completion of works by executing agencies.

The faulty designs with high execution cost also scuttled the vision of fast-track development on the main campus of the University as various projects could not take off as per scheduled time, forcing authorities to explore options of better and suitable sites for undertaking these projects.

Official sources told that the CUJ’s Building Committee for Development in its recently-held meeting under the chairmanship of newly-appointed Vice Chancellor Professor Sanjeev Jain found glaring deviations in original cost of different projects being executed by Central Public Works Department (CPWD) and expressed serious concern over below par performance of central executing agency. The University has now asked the CPWD to provide “proper justification” for cost escalation in projects.

“There has been below par performance of CPWD as the agency has not handed over a single project to CUJ till date. The committee took a various serious view of the delay in project and extraordinary increase in cost of the project without obtaining the RPE approval from the University. In view of this, it is decided to explore some other PMC (project management consultancy) to execute the forthcoming works in CUJ,” the minutes of a recently-held meeting revealed.

The committee also took serious view of the fact that CPWD had incurred an additional cost of Rs.6.01 crore which is 68 percent of total project cost of Rs.8.77 crore for the completion of Boys Hostel without taking the approval of competent authority of CUJ.

The “Development of Site and Miscellaneous Works” for Boys Hostel was estimated to be completed with a cost of Rs.64 lakh but the CPWD incurred cost of Rs.5.88 crore which is an escalation of 818 percent, official document said, adding “the University has also expressed its concerns to CPWD to cite the clause of works manual which allows escalation of 800 percent be incurred for one project without taking the Administrative Approval (AA) and Expenditure Sanctioned (ES) of the competent authority of CUJ”.

Interestingly, there has been 100 percent escalation in cost for installation of Passenger Lift at Boys Hostel. “The original cost for the project was Rs.19.62 lakh while the CPWD incurred Rs.39.24 lakh for the same,” it said.
Similarly, the “Development of Site and Miscellaneous Works” for Girls Hostel at the campus has suffered cost escalation of 901 percent as the CPWD put a revised cost of Rs.6.56 crore for the project against the original cost of Rs.64.81 lakh.

“Taking cognizance of cost overrun, the University has now decided to extend grant of escalation of only 10 percent in both projects. It will also get schedule of completion of Girls Hostel from CPWD before the release of additional funds over and above the preliminary estimates,” it said.

Sources said, “In the year 2020, it also came to light that two Public Sector Undertakings (PSUs)—M/s EPIL and CPWD had a completion time over run of more than years each of the project they executed for CUJ and violated the conditions of HEFA (Higher Education Finance Agency) and authorities had decided to call for Expression of Interest (EOI) for healthy competition among various PSUs including JKPCC, Police Housing Board, Rites and NBCC”.

The faulty designs of various projects also forced University authorities to explore the option of change in location of HEFA funded project, sources said, adding “This is being done to reduce the cost of construction to the maximum possible extent by reducing the height of retaining walls and external development without any adverse effect on the building structural stability. They also recommended exploring other sites of other buildings which are in various phases of construction”.

Pertinently, the University’s main campus has faced major infrastructure deficiencies due to the initial financial mess created by the people at helm of affairs. Two years after its inception, the University floated tenders for the projects worth Rs.486 crore against the financial allocation of just Rs.322 crore in 2013. It forced the UGC to stop its funds for development activities.