(i) NBCC had been issued the letter of Intent (LOI)/ Letter of Award (LOA) on 15.05.2017 with the approval off competent authority. Project funding was proposed to be a self -revenue generation model at no cost to Govt. of India. Several GPRA re-development projects of Ministry of Housing & Urban Development in New Delhi are based on this model. For Example, in case of seven colonies like Netaji Nagar, Sarojini nagar, Nauraoji Nagar etc.
It was decided by the Expenditure Finance Committee (EFC) formed under chairmanship of Finance Secretary and Secretary Expenditure in a meeting held on 25.04.2016 that the disposal of commercial space by NBCC will be done on freehold basis and not on 99 years lease basis, so that true market value of the built up space is realized. However, any increase in FAR in future or any redevelopment right shall remain with the Customs Department and the purchaser will only have the rights of freehold built up space area purchased by them. It was also decided that, in case of extra income generated from Monetization of built up space, the same shall be returned to the Consolidate Fund of India (CFI) as in the case of New Motibagh Project. There would be a provision for penalty of on delayed completion of the project with a ceiling of maximum 10% on NBCC charges. There would be a ceiling on NBCC fee which is 8% on the estimated cost/revised or actual cost, whichever is lower.
(ii) However, under GFR 2017, the agency charges are to be approved on lump-sum basis and it was emphasized by the Financial Adviser (FA). NBCC though, insisted on earlier decisions of the cabinet capping it at 8% of the estimated cost/ revised cost or actual cost of construction, whichever is lower.
Since the new 2017 GFR has brought in the lump-sum concept regarding the agency charges, the matter pertaining had to be decided by the Expenditure Finance Committee (EFC) and ultimately by the union cabinet during project approval. NBCC would be following all GOI /CVC guidelines and protect the interest of Govt of India. NBCC Role will be to act as the implementation Agency on behalf of Govt. of India and deal with all other aspects such as appointment of consultants, contractors by way of e-tendering.
…………….Chronological developments Mar 2016 to May 10th 2018…………..
1) Construction of office & Residential Complexes
a)In the meeting, held in the month of march 2016, with revenue secretary, it was decided to reduce the cost of expenditure from Rs. 1600 Crores, as per the preliminary estimates submitted by the CPWD AND to develop the office/residential complex on PPP model or nomination through NBCC. Immediate steps were undertaken and fresh estimates from CPWD (Rs.1063 Crores) and proposal of NBCC (estimated cost of construction Rs. 1122 Crores) were forwarded to DGHRD for final decision from the competent authority in a time bound manner in the month of April/may 2016.
b) However, in the view of amendments in GFR Rules (rules 126), it was decided to proceed with its guidelines and to adopt the procedure on e-tender basis by way of issuance of request for proposal (RFP) and thereby appoint a PMIC (project management implementation consultant) for monitoring the development. Meeting of the steering committee was held in new custom house on 21.07.2016 wherein it was decided to propose Shri Ajay Saxena, PPP expert. Revenue secretary approved the nomination of Shri Ajay Saxena as PPP expert as communicated, vide letter dated 22.09.2016 by CBEC. The draft on request for proposal (RFP), as advised by PPP expert, was forwarded to CBEC/DGHRD on 14.10.2016 for approval purpose.
c) In the meeting held with member (admin), along with JS/FA on 28.04.2017 at New Delhi, in view of new GFR 2017, it was decided that engagement of PSU on nomination basis has to be explored.
2) Appointment of NBCC on Nomination Basis for Execution of project on Self- Sustaining Basis
(i)A meeting chaired by the revenue secretary was held on 08.05.2017 when the matter, as to whether NBCC should be appointed on nomination basis was discussed in detail. Accordingly, during the discussion held on 08.05.2017, revenue secretary agreed to appoint NBCC (India) Ltd. on nomination basis, as a project management consultant for the construction of office complex and residential quarters at the customs enclave plot, Wadala (east), Mumbai.
(ii)Letter of intent (LOI)/letter of award (LOA) as project management consultant was issued vide letter dated 15.05.2017.
(iii)NBCC has conveyed their acceptance of the LOA as project management consultant vide letter dated 20.05.2017.
(iv)NBCC had issued e tender for design and engineering consultancy services for construction of office complexes and residential quarters at customs enclave plot, Wadala (east), Mumbai vide tender dated 03.06.2017 and corrigendum’s dated 09.06.2017 and 22.06.2017.
(v)NBCC has re issued e-tender for “ design and engineering consultancy services for construction of office complexes and residential quarters at customs enclave plot, Wadala (east), Mumbai vide tender dated 28.07.2017 and opening of technical bids was scheduled on 22.08.2017.
(vi)Technically qualified bidders were required to give “Design Concept Presentation” for the above tender highlighting the master plan, which was held on 12 September 2017 in New Delhi and attended by the Chief Commissioner of Customs Zone -I, MUMBAI and the officers of Customs Enclave Cell (CEC).
(vii)Design And Engineering Consultant Works have been awarded to M/S ARCOP ASSOCIATES PVT LTD. through competitive bidding by NBCC.
(viii)A consolidated residential requirement of CBEC, CBDT and ED has been prepared in response to IFU query, received through DGHRD dated 20.02.2018. CBEC residential requirements have been kept at 2061 quarters and office requirements has been revised to 102874 sqm. ED has revised residential requirements to 55 quarters and office requirements are 2563 sqm. Similarly, CBDT has proposed requirement of 1597 quarters and office space of 62091 sqm. The reply to queries raised by IFU, vide letter dated 20.02.2018 has been communicated to DGHRD vide letter dated 08.03.2018.
(ix)Feasibility report was forwarded by NBCC to financial advisor through DGHRD and same was forwarded to this office for providing detailed comments on the same. Comments of CBEC on the feasibility report of NBCC was forwarded to DGHRD after due consultation with PPP consultants, Shri Ajay Saxena on 23.03.2018.
(x) The observations raised by IFU on feasibility report received, vide DGHRD’s letter dated 12.04.2018, were replied with suitable documents, vide this office letters dated 20.04.2018 and 21.04.2018. Further, observations of IFU received vide DGHRD, s letter dated 01.05.2018 were replied to vide this office letter dated 04.05.2018.
(xi) Subsequently, letter was written to District Valuation Officer (DVO-I), Income Tax, Mumbai to carry out the valuation of the open land area of Customs Enclave Plot, Wadala. The DVO-I inspected the land and had given the valuation report dated 10.05.2018. The Customs Enclave Plot has been valued at Rs. 4714.37 crores.