VIJAYAWADA: In a major embarrassment to the State government, the Comptroller and Auditor General (CAG) of India has raised serious questions on the rationale, planning and execution of its oft-cited achievement, the Pattiseema Lift Irrigation Scheme (PLIS), which was completed in a record time of one year to divert 80 tmc of water from the Godavari to the Krishna.
In its audit of the State accounts for 2015-16, the CAG pointed out that the Rs 1,427.70 crore bid submitted by L1 contractor (Megha Engineering and Infrastructure Ltd) was accepted though the estimated cost of PLIS was Rs 1,170 crore - 21.9% excess over the estimated contract value.
Surprisingly, the CAG said the project was completed even without identifying the intended users. PLIS construction began in March 2015 and it was completed in March, 2016. “When the details of intended use of water under the scheme were called for, the Chief Engineer of the project replied (May 2016) that the list of industries had not been prepared and that the villages for domestic supply could not be identified since the distributary system for Polavaram Right Main Canal had not been finalised. The reply confirms that the project was taken up without identifying the users," it explained, adding that no mention was made about irrigation potential! It is pertinent to note that during Kharif season last year, the project provided 57.8 tmcft of water to the Krishna eastern delta and 37.68 tmcft to the Krishna western delta.
The Auditor also observed that the Benefit Cost Ratio (BCR) of the project was worked out on wrong assumptions without supporting calculations. For example, revenue from industrial water supply was considered as Rs 41.51 crore despite no industrial units having been identified.
Similarly, it recalled that the life span of the project was taken as 20 years in the Detailed Project Report and depreciation was allowed accordingly. However, the project is contemplated to run only till the completion of the Polavaram Project scheduled for completion in 2019. Thus, the life of PLIS would only be three years.
Further, while calculating the BCR, the department concerned considered the irrigation benefits for an ayacut of 1.2 lakh acres under Polavaram RMC. However, works relating to the distributary network under Polavaram RMC were yet to be taken up and no irrigation benefit has been achieved from this ayacut, it said.
The CAG also faulted the State government for going ahead with PLIS without obtaining clearances. As per the guidelines of the Central Water Commission (CWC), for any project, having inter-state ramifications, a preliminary report must be sent to it for appraisal. If the project is found feasible, the CWC conveys its in-principle consent for preparation of the DPR. Besides, Section 84 of the AP State Reorganisation Act-2014 mandated that before taking up any new project on Godavari or Krishna rivers, CWC approval is to be obtained. The CWC approval for PLIS DPR was not obtained though it was required not only because Godavari and Krishna rivers that were being linked through the project are inter-state rivers but also it is mandated under the AP State Reorganisation Act, it observed. Similarly, no environmental clearance was taken for the project though it is required as per the notifications of the Ministry of Environment, Forest and Climate Change.