VIJAYAWADA: In its compliance audit report on the Poola Subbaiah Veligonda Project for the year ending March 2021, the Comptroller and Auditor General of India (CAG) has pointed out certain lapses in the project execution.
In the report, tabled by Finance Minister Buggana Rajendranath Reddy in the State Assembly on Thursday, CAG said the schedule of payments was incorrectly approved with higher percentage in respect of dams and main canals, and reduced percentage for distributary network and Operation and Maintenance, without reference to the corresponding agreement.
This had resulted in front payments of Rs 40.94 crore to contractors causing lock up of funds and additional financial burden in case of pre-closure and non-continuance of works by contractors. Further, CAG pointed out that the delay in the approval of designs and frequent change in contracting agencies had hindered the progress of the project.
Veligonda project was taken up by the State government at a total cost of Rs 4,458.86 crore and the same was increased to Rs 5,217.73 crore as of November 2021. Out of the total budget authorisation of Rs 2,190 crore during 2017-21, only Rs 1,270.90 crore was incurred. “Despite increase in the budget authorisation during 2017-19, the expenditure incurred showed a decreasing trend, which in turn showed that the project is dampening,” CAG observed.
It was further observed that a preliminary analysis for assessing the availability of water, for a project solely dependent on flood water, is vital for the success of the project. “However, no such records were available in conformity of any such analysis,” it remarked.
CAG also observed that execution of feeder canal with lesser discharge capacity than tunnels would result in short creation of contemplated ayacut. Stating that certain crucial components such as tunnels, distributary network and structures on canals are still in progress, CAG said even after 17 years, since the commencement of works, the project has remained incomplete, thereby depriving the intended benefits to the people of the semi-arid and drought-prone area.
Recommendations
Government should crystallise the planning parameters and redesign the components of the project wherever necessary and execute the Veligonda project accordingly
Government should identify the phase-wise priorities and expedite the execution of the project to derive early benefits
Schedule of payments of all packages should be reviewed to ensure that payments are not front loaded
Government should streamline the procedures relating to EPC contracts, including the deliverables, scope and specification of work to avoid undue advantage to contractors