Improper estimate of work of a water treatment plant at Khamarpara, Bansberia, by Mackintosh Burn Limited (MBL) led to a loss of Rs 1.61 crore for this state government undertaking, according to a report of Comptroller and Auditor General (CAG) of India placed in the state Assembly this month.

Kolkata Metropolitan Water and Sanitation Authority (KMW & SA) have awarded this work to this firm.

The submission of quotation without adhering to the norms of estimation of cost led to the loss. The matter has been brought to the notice of the state government.

An expenditure of Rs 15.11 crore upto March 2016 was incurred by MBL against the awarded work of Rs 13.50 crore, the report stated.

In 2015, the construction work of this water treatment plant was completed and its operation and maintenance work was finished next year.

The management of MBL confirmed to CAG the loss. It was further stated that the firm was very much interested to procure the project as it did not have any previous credentials of construction of water treatment plant.

The reply of management, the CAG report stated, did not specify the reason for quoting below the prevailing market rate of 14.97 crore.

The work involved completion of the partially completed water treatment plant. It included two million gallon underground reservoir-cum-pumping station within the campus of the existing campus of the water treatment plant.

Maintenance and operation of the water treatment plant on a turnkey basis for 12 months was also a part of MBL’s job.

According to the state public works department code, preliminary designs and estimates should be prepared as the work has been undertaken in public interest.

This includes checking of unit cost of each item during the present time and and if necessary revision of on the basis of PWD’s schedule of rates, the report stated.

The CAG report noted that while market rate of the cost of the project according to KMWSA estimate was Rs 14.97 crore, the rate quoted by MBL amounted to Rs 13.50 crore.

During July 2009 to February 2012 there were six ongoing works of water treatment plant the cost of whose one million gallon water per day was Rs 1.55 crore which was higher than the rate quoted by MBL amounting ro Rs 1.32 crore.