2 min readNew DelhiAug 14, 2026 04:12 AM ISTThe CAG also flagged a “faulty process” for calculating contractor profit and overhead charges.The Comptroller and Auditor General of India (CAG) has flagged “discrepancies” in the Central Public Works Department’s (CPWD) methodology for determining its Schedule of Rates — the basis for project cost estimation and tendering, finding that 93 per cent of projects were awarded at costs below CPWD estimates.In its report on the Union Government’s Economic and Service Ministries, tabled in Parliament on Wednesday, the CAG found that the rates in CPWD’s Delhi Schedule of Rates (DSR) 2021 were unrealistic. The report says that the CPWD did not conduct a market survey before revising the schedule in 2021.“The methodology adopted by CPWD for collection of base rates was not realistic. During the period from January 2022 to January 2023, out of 5,011 works, 4,666 or 93%, were awarded at tendered costs less than the estimated cost prepared based on DSR 2021,” the report said.The CAG underlined the significance of an accurate schedule of rates, noting that CPWD’s budget is based on estimated project costs. The department’s Budget Estimates rose from Rs 2,027.33 crore in 2020-21 to Rs 3,100.57 crore in 2021-22 and Rs 4,314.08 crore in 2022-23.“If the rates of Schedule of Rates items are higher than prevailing market rates, the estimated project cost increases, which may result in undue benefit to the contractor,” the report warned, adding that accuracy of the estimates was imperative given the volume of public funds involved.The CAG also flagged a “faulty process” for calculating contractor profit and overhead charges.© The Indian Express Pvt LtdDamini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. Expertise Key Coverage Areas: Damini Nath currently specializes in reporting on two crucial beats: Housing and Urban Affairs: Providing in-depth analysis and reporting on India's urban development, policy, and housing issues. Election Commission (EC): Offering authoritative coverage of electoral processes, policies, and the functioning of India's constitutional body responsible for conducting elections. Professional Background: Her extensive experience includes roles as a reporter and sub-editor, demonstrating a comprehensive understanding of the journalistic process from fieldwork to final production. Previous Role: Before joining The Indian Express in 2022, she served as a dedicated reporter with The Hindu’s national bureau, where her reporting portfolio included: Culture Social Justice Housing and Urban Affairs The Election Commission beat (a consistent area of focus). Trustworthiness Damini Nath's decade-plus career at two of India's most respected and authoritative news institutions, The Indian Express and The Hindu, underscores her commitment to factual, impartial, and high-quality reporting, establishing her as a trusted and credible source for news on urban governance and electoral matters. ... Read More Tags:Central Public Works DepartmentComptroller and Auditor General of India (CAG)AdvertisementLoading Recommendations...AdvertisementAdvertisement