‘Meghalaya House cost escalation justified’

By Our Reporter

 SHILLONG: The State Government has justified the additional expenditure of Rs 26 crore incurred in the construction of the Meghalaya House at Kolkata.

Speaking to The Shillong Times on Tuesday, GAD Minister AL HEK informed that the State PWD has justified the cost escalation and the same has been forwarded to the Planning department for verification.

The GAD, had, earlier asked the PWD (Building) to justify the cost escalation for the construction of the Meghalaya House located in the heart of the metropolitan city.

Initially an amount of Rs 24 crore was estimated for the construction, but the budget was later revised by Rs 26 crore.

One main reason which has led to the cost escalation is that the design of the Meghalaya House was changed on numerous occasions.

“Following the justification by PWD we have no option but to pay the additional amount to the contractor,” Hek stated.

The construction, which is yet to be completed, was initiated in October 2006 and has seen several delays over the years.

Meanwhile, it was learnt that the State Government had not yet paid an amount around Rs 6 crore to the Asian Housing Corporation Limited which is constructing the building.

The State Government has targeted to inaugurate the Meghalaya House within this year. The Government is expected to earn monthly revenue of Rs 25 lakh in the form of rent collection from the commercial block.

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