SHILLONG, MAY 5: The state Cabinet has decided that any cost escalation above 25% in government projects must now get cabinet approval, ending the earlier practice of clearance by the Finance Department alone, Cabinet Minister and MDA spokesperson Wailadmiki Shylla said on Tuesday.

“As you all know, because in the past what happened is that any escalation, the department used to take it to the finance department and gets it cleared. But now the cabinet has decided that any escalation above 25% it has to get the cabinet approval,” Shylla told reporters.

He said the new norm was applied in the case of the indoor stadium at Jongsha. The project was initially planned at Pomlakrai but was later shifted to Madan Khon Jongsha.

“Same thing here also…the indoor stadium in Jongsha because at the beginning we were supposed to construct it in Pomlakrai. Firstly there is a shift of location,” Shylla said.

The scope of work also expanded significantly due to requirements linked to the National Games, he said. The planned area increased from 12,031 sq meters to 15,417 sq meters.

“At the same time, we realise because of this National Games and other things, so there are lots of changes…the plan area at the beginning it was supposed to be 12,031 sq meters, it has increased to 15,417 sq meters. So the scope of work has increased tremendously,” he said.

As a result, the project cost has gone up from Rs 22.75 crore to Rs 35.40 crore.

“That is why the amount has increased from originally Rs 22.75 crore to Rs 35.40 crore,” Shylla said.