3 weeks ago
Delhi EFC Approves Revised Hospital Costs, Orders Vigilance Probe
There is a special group in Delhi called the Expenditure Finance Committee.
This group checks how the government spends money.
The group is led by the Chief Minister of Delhi, Rekha Gupta.
They look after big projects, like building new hospitals.
Building a new block at Lok Nayak Hospital cost much more than planned.
The price went from about 534 crore rupees to about 1,269 crore rupees.
One big reason was a payment of about 94 crore rupees to a construction company after a disagreement.
The committee wants someone to check whether that payment was handled properly.
They also approved more money for two other hospitals, in Madipur and Jwalapuri.
The new hospitals will help more sick people get care.
The Delhi EFC, headed by Chief Minister Rekha Gupta, approved raising the LNJP Hospital block cost from Rs 533.91 crore to Rs 1,268.85 crore.
It ordered a vigilance enquiry into the Rs 94.61 crore arbitration award paid to the previous contractor of the LNJP Hospital project.
The LNJP project is 55 per cent complete, with Rs 586.09 crore already spent, and remaining work is expected to take 30 months.
Cost increases were attributed to the arbitration award, a GST hike from 12 to 18 per cent, higher material and labour costs and post-COVID changes to hospital services.
The EFC also approved revised estimates of Rs 466.50 crore for Madipur Hospital and Rs 484.04 crore for Jwalapuri Hospital, both 65 per cent complete.
- Who
- The Expenditure Finance Committee of the Delhi government, chaired by Chief Minister Rekha Gupta
- What
- Approved revised estimates for hospital projects and directed a vigilance enquiry into the Rs 94.61 crore arbitration award related to the LNJP Hospital project
- Where
- Delhi, India
- When
- In a recent EFC meeting, with decisions reported by officials on Wednesday, August 5
- Why
- Costs rose due to the arbitration award, an increase in GST from 12 per cent to 18 per cent, higher material and labour costs, and changes to hospital services after the COVID-19 pandemic
Key facts
- LNJP Hospital block original estimate
- Rs 533.91 crore
- LNJP Hospital block revised estimate
- Rs 1,268.85 crore
- Arbitration award
- Rs 94.61 crore (Rs 82.44 crore award plus Rs 12.17 crore interest)
- LNJP project progress
- 55% complete; Rs 586.09 crore already spent
- Cost of remaining LNJP work
- Rs 682.75 crore
- Expected time for remaining work
- 30 months (6 months planning, 24 months execution)
- Madipur Hospital revised estimate
- Rs 466.50 crore; 65% complete (691 beds)
- Jwalapuri Hospital revised estimate
- Rs 484.04 crore; 65% complete
Sources
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