Irrigation Project delays escalating costs

Irrigation Project delays escalating costs
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Highlights

The delay in the completion of irrigation projects has put an additional burden to the tune of Rs 14,000 crore on the state exchequer in Telangana, according to the Comptroller and Auditor General of India (CAG) 2015-16 report. The report said that none of the 23 projects which were due for completion have been completed by March 31, 2016. 

Hyderabad: The delay in the completion of irrigation projects has put an additional burden to the tune of Rs 14,000 crore on the state exchequer in Telangana, according to the Comptroller and Auditor General of India (CAG) 2015-16 report. The report said that none of the 23 projects which were due for completion have been completed by March 31, 2016.

The total amount of funds expended on these projects was Rs 24,224 crore. The state government informed the CAG that land acquisition, resettlement and rehabilitation and pending forest clearances was the main reasons for the delay in the execution of projects within the stipulated time.

As a result, the revised total cost of the 16 major and medium projects has been increased to Rs 30,185 crore from Rs 16,134 crore. The revised cost of Mahatma Gandhi – Kalwakurthi Lift Irrigation Scheme is Rs 5,072 crore as against Rs 1,426 crore.

The cost of Sripadasagar – Yellampally lift irrigation scheme has been increased to Rs 4,376 crore from Rs 3,177 crore. Aliminety Madhava Reddy, including SLBC (Srisailam Left Bank Canal) tunnel and LIS on Udayasamudram balancing reservoir project cost was increased to Rs 6,347 crore from Rs 3,865 crore.

The report also said that blocking funds on incomplete projects impinged negatively on the quality of expenditure and non-completion of the projects within stipulated period not only resulted in cost escalation, but also deprived the state of the intended benefits for prolonged periods.

The CAG also found fault with the government for not disclosing financial results of any of its irrigation projects despite having some of the largest irrigation projects. The CAG insisted that the government benefits, including creation of new ayacut and drinking water supply from the projects in 2015-16 financial year.

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