Imphal, February 08 2009: Work agencies in charge for construction of Individual Adult Rearing Houses (IARHs) of the Sericulture Project being taken up in the State with assistance from Japanese Government have been found inflating estimates higher than the due amounts.

As such the costs of constructing IARHs have gone beyond the estimated amount, disclosed an official source.

As per the clearance given by the Public Investment Board (PIB), work agencies are entitled only 5 percent charge for constructing one IARH.

However, Treasury Office took 11.75 percent as against 5 percent cleared by PIB.

More than 4000 IARHs should be constructed in different Field Operating Units (FOUs) set up for the Sericulture Project.

Out of these, Treasury Office took work agency charge for 135 IARHs at a much higher rate.

Further, the Treasury Office has deducted 3 percent contingency charge and two percent income tax which are not applicable according to rules, conveyed the source.

The total amount deducted by Treasury office is Rs 21,41,566.This includes contingency charge of Rs 3,15,000 9 (challan no 144, dated 24/03/07), Income Tax of Rs 2,10,000 (challan no 146 dated 24/03/07), work agency charge of Rs 9,28,666 (challan no 51, dated 21/08/07), Income Tax of Rs 2,75,160 (challan no 52, dated 21/08/07) and another contingency charge of Rs 4,12,740 (challan no Nil) .

The work agency charge of Rs 9,28,666 is inclusive of the 6.75 percent additional charge levied by Treasury Office.

District Council Engineering Cell Wing I, handling construction of IARHs, submitted a written appeal to the Sericulture Project Director on January 28 seeking release of the additional work agency charge deducted by Treasury Office.

Sericulture Contractors' and Sub-Contractors' Association, Manipur has decried the failure of District Council Wing I to release due bills for constructing IARHs after the District Council had reportedly given assurance to release the pending bills within the last month.

A press release issued by the association conveyed that the matter will be informed to the Japan Bank of International Corporation (JBIC) and the Ministry of Textiles, Government of India in case the pending bills are not released at the earliest.

The estimated cost for constructing one IARH is Rs 44,000 in hill areas and Rs 40,000 in valley.

Construction works of IARH is handled by the District Council Engineering Cell Wing I, the association said while disclosing that it costs them 10 to 15 percent of the estimated amount in the process to take sub-contract of constructing IARH.

Generally, District Council allotted work orders for construction of IARH ranging from 10 to 20 in number to one sub-contractor, it conveyed.

But the District Council in connivance with the Sericulture Department cancelled the work orders already given only to allot work orders for construction of five/six IARHs on sub-contract to one individual anew, the association informed.

The new arrangement meant that the sub-contractors lost the whole amount spent in the entire process to get previous work orders, lamented the sub-contractors.

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