With more than eight years delay in its construction, the Polavaram project will cost an additional Rs 3,331 crore to the state government.
Even as the integrity of the contracts is under scrutiny, the state government on Wednesday revised the Polavaram head works estimate by 82.44 percent upwardly.
From the original estimate of Rs 4,040.935 crore, the government now put the estimated cost at Rs 7,372 crore, raising it by Rs 3,331.285 crore. It may be recalled that the government invited tenders for Polavaram works last year. Now, a probe is on into the veracity of the papers filed by the bidders and a team of engineers have left for China and Russia to verify them. If the shortlisted bidders are found guilty, the government may invite fresh tenders with the revised estimates, sources in the engineering department said.
Since November, 2004, Polavaram tenders were not finalised due to various reasons. Now, as per the latest standard schedule of rates (SSR), the cost of the project increased with the rise in the cost of steel, cement and other materials.
The original estimated cost in November 2004 was Rs 1,175.935 crore for the construction of a spillway of 985.50 metre length and connectivity from the reservoir to the right and left main canals.
In March 2005, the state government further accorded administrative approval for an earth-cum-rockfill dam across Godavari river, including a spill channel, approach channel and a hydro-electric power block. The cost was revised to `2,865 crore.
The administrative approval for the earth-cum-rockfill dam alone was Rs 943.97 crore. The estimate for earth-cum-rockfill dam including spill channel and approach channel was technically sanctioned for Rs 896.75 crore. Tenders were invited in December, 2005 for the dam and channel work and awarded to M/s CR18G-BSCPL(JV), Hyderabad, and the agency had executed only 1.68 percent of the work.
The spillway work was awarded to M/s Madhucon-Sinohydro and done to an extent of 17.29 pc. Due to the poor progress of work, the contracts were pre-closed in August, 2009 and the government decided to invite fresh tenders in 2009 treating all the three components of Polavaram project.