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Sl.

No.

Details

Estimated Cost

(in Crores)

1

Cost of land (20 acres) including cess, registration charges, stamp duty, etc.,

27.62

2

Cost of construction of buildings, infrastructure including taxes

258.82

3

HSCL Service Charges @5% on serial no.2 above

12.94

4

Lab equipments, Machineries and other infrastructure required for operating

the Academy (Non-recurring)

25.00

5

Functioning of the Academy including registration process, cost of training,

faculty and supporting staff, maintenance of buildings and other operational

costs Rs.20crores per year (recurring)*

20.00

6

Miscellaneous and rounding off

1.62

Grand Total

346.00

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1.

The proposal of Labour Department for taking up construction of the Sir M. Visvesvaraya National Construction

Academy was approved in Cabinet on 10.12.2015. At that time the Cabinet had agreed to give 4(G) exemption

and allow nomination basis in favour of M/s. Hindustan Steelworks Construction Corporation Limited. Now

after more than 4 months the present DCN has been submitted and it is seen that the work has not started. In such

a case if time is not of essence, the Labour Department could have as well as gone though tender route to award

this work instead of on a nomination basis to M/s. HSCC. Even now if the work in not urgent, the tender route

may be considered. (HSCL).

2.

The total project cost at the time of the last Cabinet approval on 10.12.2015 was Rs. 250 Crores of which the cost

of construction was Rs. 187.8 Crores. In the present DCN the project cost has been increased to Rs. 346 Crores

and the construction cost to Rs. 258.8 Crores. FD is of the opinion that the total project cost as well as

construction cost should be limited to the earlier level approved by the Cabinet on 10.12.2015. The Labour

Department is advised to restrict the total expenditure to the earlier limits.

3.

In the earlier Cabinet approval to the M/s. HSSC (HSCL) was taken on nomination basis on project management

consultancy basis (PMC basis). Whereas now the proposal has been changed to give it to M/s. HSCC (HSCL) on

⁶

deposit contribution basis. The logic for this change is not clear and FD is of the view that it may be continued on

Project Management Consultancy basis.

4.

It is also seen that preparatory activities to establish the Academy (which is a new organization/institution) has

not progressed much. We may have a situation where the building will be ready but the institution will not be

ready to run in this building. In the circumstances Labour Department may take all urgent steps to establish the

institution first, even in a rented building and later move to the newly constructed building. Hence they may

urgently start the institute in a small way in a rented building.



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