Nagaland: Over Rs.9 crore paid for unfinished 18.85 km road

The Public Accounts Committee (PAC) of the 14th Nagaland Legislative Assembly has flagged an unfruitful expenditure of Rs 9.21 crore incurred on the proposed road connecting Peren district road at Ngwalwa with Chümoukedima after the project remained incomplete for more than a decade.
The observation was made in the PAC’s 146th Report on the examination of the Comptroller and Auditor General of India (CAG) audit report for 2021-22 covering social, economic, general and revenue sectors. The report was adopted by the committee on February 12, 2026 and presented to the House on March 12.
According to the report, the Ministry of Urban Development had approved the project in March 2009 for construction of an 18.85-km road connecting Ngwalwa in Peren district with National Highway 39 at Chümoukedima. To facilitate execution, the Urban Development Department divided the road into three packages- Package I (0–9 km), Package II (9–13.30 km) and Package III (13.30–18.85 km).
Audit examination conducted in December 2020 revealed that there was delay in obtaining technical approval from the chief engineer PWD (Roads & Bridges). Detailed estimates and draft tender documents were forwarded only in December 2009.
The department invited tenders in January 2010 and awarded the work in February 2010 to three contractors at a cost of Rs 12.86 crore, with the project scheduled for completion by February 2012.
The report stated that the Government of India released its entire share of Rs 12.07 crore, while the state government released Rs 13.07 crore between June 2010 and November 2018 to the Executive Engineer, Urban Development Department, Kohima. This included Rs 11.78 crore from the central share and Rs 1.29 crore from the state government.
However, only Rs 9.01 crore was paid to the contractors as of November 2020. Audit also pointed out that against the central share of Rs 12.07 crore, the state released only Rs 11.78 crore, resulting in a short release of Rs 0.29 crore. The remaining Rs 0.05 crore of the state share was also not released.
A joint physical verification conducted in December 2020 by the audit team along with engineers of the executive engineer’s office found that the road remained incomplete and lacked connecting bridges.
The committee noted that the detailed project report (DPR) had been prepared without proper field survey, resulting in changes in alignment, requirement of additional works and land disputes.
It observed that deficiencies in planning and survey, along with failure to ensure encumbrance-free land before awarding the work, caused delays of more than 10 years beyond the stipulated completion period, rendering the expenditure of Rs 9.21 crore unfruitful.
Responding to audit queries, the department stated that the steep terrain, topography and heavy rainfall had necessitated deviations from the original DPR and that two additional bridges had to be constructed though they were not included in the original plan.
The department also said the additional Rs 18.17 crore required to complete the project had not been received and added that it might not be advisable to proceed even if funds were made available, as the entire stretch of the road would eventually be handed over to the National Highways and Infrastructure Development Corporation Limited (NHIDCL) after completion of formalities.
It also admitted that non-encumbrance certificates had not been obtained before execution of the work, which led to delays in negotiations with landowners. The department, however, informed that the land-related issues had since been resolved.
Further, the department stated that NHIDCL had obtained no-objection certificates from the district administration of Peren and work was progressing, while the required NOC from the district administration of Chümoukedima was yet to be obtained.
During oral evidence before the committee, departmental representatives informed that no enquiry had been initiated against officers responsible for faulty planning and survey and acknowledged that the same officers had executed the work without securing non-encumbrance certificates.
They also stated that a portion of the project had already been taken over by NHIDCL and the remaining stretch would be handed over once necessary formalities were completed.
After examining the replies, documents and photographic evidence submitted by the department, the committee decided to drop the audit paragraph. However, it recommended that the department undertake proper planning and detailed surveys before implementing DPRs in future to avoid recurrence of such lapses.
The PAC for 2025–26 is headed by chairman Mhathung Yanthan and comprises members T.N. Mannen, Kropol Vitsu, Kekhrielhoulie Yhome, Wangpang Konyak, Temjenmenba and Y. Lima Onen Chang.