The Comptroller and Auditor General of India (CAG) has identified ₹297.97 crore in excess and avoidable expenditure in road projects executed by the Maharashtra government under the Hybrid Annuity Model (HAM), raising concerns over financial discipline and project planning practices.
The observations were detailed in an audit report presented in the state legislature, which examined multiple road projects implemented through the HAM framework, a model that combines public and private investment for infrastructure development.
According to the audit, several Detailed Project Reports (DPRs) were prepared without adequate technical justification, with cost estimates often lacking proper breakdowns. In multiple instances, provisions were included on a lump-sum basis without supporting calculations, leading to inflated project costs.
The report also highlighted that 78 DPRs covering 195 works were prepared at a substantial cost, with certain allocations found to be unnecessary. This included expenditure on components such as land acquisition activities that were either not carried out or did not require the level of funding provided, resulting in avoidable financial outgo.
Further scrutiny revealed issues in tendering and contract structuring, where certain clauses included in bid documents were not aligned with standard practices, contributing to cost escalations and reduced financial efficiency.
The findings point to gaps in project appraisal, cost estimation, and oversight mechanisms, particularly in projects implemented under hybrid financing structures. The audit underscores the need for more rigorous scrutiny at the planning stage, improved transparency in cost calculations, and tighter monitoring during execution to ensure optimal utilisation of public funds.
