CAG flags Dimapur’s NST bus complex after 14 years, with INR 10.61 crore spent and only 33% progress recorded
DIMAPUR — The proposed NST Bus Station, Night Parking-cum-Marketing Complex at Khermahal in Dimapur has remained incomplete for more than 14 years despite expenditure of INR 10.61 crore, with only 33% physical progress recorded as of June 2024, the Comptroller and Auditor General (CAG) of India has reported.
The project was proposed by Nagaland State Transport (NST) in August 2010 to convert its Central Workshop at Khermahal into a common terminal for rural and short-distance bus services. It was intended to reduce traffic congestion, improve passenger amenities and provide parking, commercial space and affordable lodging. The complex was projected to generate INR 1.29 crore in annual revenue.
The project comprised two components—shifting the NST Central Workshop from Khermahal to the Inter-State Truck Terminal (ISTT) at Purana Bazaar and converting the existing workshop into the proposed bus station and market complex. The state government approved both components in September 2010.
For the first component, the department estimated a cost of INR 5.20 crore, but the state released only INR 3 crore between March 2011 and September 2012. The entire amount was utilised by December 2012, but the workshop could not be shifted because of inadequate funding. This, in turn, affected implementation of the second component.
Also read: CAG flags INR 288 cr extra spending in Nagaland’s Jal Jeevan Mission
In October 2013, the state submitted an INR 50-crore Detailed Project Report (DPR) for the second component, to be implemented in two phases. Phase I was estimated at INR 24.87 crore and Phase II at INR 24.98 crore.
The Centre approved Phase I at INR 24.87 crore in September 2014, comprising INR 22.38 crore as the central share and INR 2.49 crore as the state share.
However, tendering was delayed by six months because of a dispute between the Urban Development and Transport departments. The work was eventually awarded to M/s Naagaamii Tech, Dimapur, for INR 19.13 crore in March 2015, with completion scheduled for February 2017.
The first central instalment of INR 5.74 crore was released only in June 2016. The state government released the funds to the department in December 2020, meaning they remained idle for more than four years. The state's matching share of INR 2.49 crore was released in August 2021.
By June 2024, INR 7.61 crore of the INR 8.23 crore released had been utilised, but physical progress stood at only 33%.
A revised DPR approved in November 2020 also reduced the original design of two three-storey buildings to a single three-storey Bus Terminus-cum-Market Complex, citing cost escalation. The audit noted that the revised DPR was not submitted to the Centre for approval despite changes in the project's cost, scope and design.
When the state sought further central assistance in March 2021, it was informed that the scheme was co-terminus with the recommendations of the 14th Finance Commission and that projects funded under it had to be completed or closed by March 31, 2021.
With central funding discontinued, the state was left with an additional liability of at least INR 16.64 crore to complete the project.
The CAG observed that poor planning, delayed release of funds and weak oversight had resulted in cost escalation and prolonged delays. Despite the expenditure, the intended city bus transport system had not been achieved, while the state had also lost the opportunity to earn the projected INR 1.29 crore in annual revenue.
The state government, in May 2024, stated that efforts were being made to arrange funds for early completion of the project.
JOIN OUR WHATSAPP CHANNEL