SHILLONG: Chief Minister Mukul Sangma has admitted that the State Government has incurred a huge loss due to delay in the completion of the Crowborough Hotel, a project which was conceptualized in 1987.
In reply to a question raised by Jemino Mawthoh (UDP) in Assembly on Wednesday, the Chief Minister said that the Government incurred a loss of around Rs 7.6 crore for paying the dues to the two firms which had been allotted to take up the project.
Sangma said that the Government had first awarded the project to M/s SA Builders in 1987 at a total estimated cost of Rs 2.6 crore adding that the firm was given 20 months time to complete the project from the date of allotment.
He further said that the Government had to scrap the agreement with the firm in June 1989 for its inability to complete the project within the stipulated time
“After this, the Government then awarded the project to M/s Astra Construction Limited at an estimated cost of Rs 2.65 crore in February 19 1993. The firm was given 15 months to complete the project,” the Chief Minister said.
The Chief Minister said that the Government again had to scrap the agreement with M/s Astra Construction Limited in September 30 1996 after it failed to meet the deadline given. As part of the agreement, he informed that the Government had already paid a total amount of Rs 2.6 crore to the M/s SA Builders adding that the government paid another amount of Rs 2.65 crore to the M/s Astra Construction Limited.
After the scrapping of the agreements, he informed that the two firms then approached the court against the decision of the Government which further led to the delay of the project.
“Both the Government and the two firms finally agreed to have an out of court settlement,” he said.
As part of the out of court settlement, he said that the Government had to pay Rs 1.94 crore to M/s SA Builders and another Rs 1.3 crore to M/s Astra Construction Limited as compensation.
Meanwhile, the Chief Minister revealed that as per the assurance of the present lessee, the project is expected to be completed in December 2015.
He said that the lessee is expected to pay an amount of Rs 98.99 crore during the 33 year period of the lease agreement to the Government adding that the payment which is to be paid in installments by the lessee quarterly is Rs 47.88 lakh.
Earlier, Nongthymmai UDP legislator Jemino Mawthoh had expressed concern over the delay in the completion of the project.
“This reflects badly reflection on the capability of the Government to complete a project which was conceptualized since the late 80’s,” Mawthoh said.
Meanwhile, Shillong West legislator Paul Lyngdoh felt that the hotel should be re-christened as “Crore Borrow Hotel’ taking into account the loss incurred to the State exchequer.
