PANJIM: The Comptroller and Auditor General of India (CAG) has slammed former Digambar Kamat-led government for incurring loss of around Rs 22.62 crore to the State exchequer in the implementation of Goa Broadband Network (GBBN), through United Telecoms Limited (UTL).
CAG has raised question over the government decision of awarding the GBBN contract to UTL, despite the very fact that BSNL, a Central government undertaking, had offered 90 percent discount to all the States to promote e-governance through State Wide Area Network (SWAN). Delay in completion of project by UTL led to additional expenditure of Rs 82 crore.
“The State government in 2006 and in 2009 (re-tendered) awarded the GBBN contract to UTL at higher rate without considering the more economical option of BSNL, leading to avoidable expenditure of Rs 17.40 crore besides loss of interest of Rs 5.22 crore on mobilization advances,” CAG has said in its report for a period March 2014.
State government in its reply in July 2014, stated that BSNL did not have ready infrastructure in 2006 and that the BSNL intranet charges were more compared to UTL. However, CAG, not satisfactory with the reply, has said that the BSNL had the infrastructure for internet connectivity in 2006 when the GBBN project was taken up.
“The delay in completion of project by UTL, further led to additional expenditure of Rs 82.49 crore,” CAG noted.
Detailing out the GBBN project, CAG said that the project was initiated to provide internet and intranet connectivity to 2,864 government offices. The work was awarded in November 2006. UTL had to complete the project with broadband connectivity to government offices, panchayats, educational institutions and households by September 2007.
UTL was to provide internet bandwidth of 47.5mbps per annum for the first three years with total expenditure of Rs 2.52 lakh, while 161mbps per annum for the next seven years with expenditure cost of Rs 2.26 lakh.
“Due to failure of UTL in timely completion of the project, a revised proposal was accepted and re-tendered in February 2009,” CAG said. As per the new proposal, a cap was placed on the number of locations to 414 and offices to 802. The internet band width was also reduced, further reducing the total expenditure by almost 50 percent.
