HYDERABAD: The Ministry of Jal Shakti has asked the Telangana government to refund Rs 36.34 crore released as Central assistance for nine projects under the Pradhan Mantri Krishi Sinchayee Yojana–Command Area Development and Water Management (PMKSY-CADWM), following audit objections. The amount is to be returned with interest at 7% a year. The final interest liability is yet to be calculated.
On July 3, 2023, the state government proposed dropping 11 PMKSY-CADWM projects and sought permission to readjust the Central assistance released for nine of them towards four ongoing PMKSY-Accelerated Irrigation Benefits Programme (AIBP) projects — J Chokka Rao Devadula Lift Irrigation Scheme, Rajiv Bhima Lift Irrigation Scheme, SRSP Stage-II and Peddavagu at Jagannathpur.
However, in a letter dated December 14, 2023, the Ministry said funds released under the scheme could be used only for the purpose for which they were sanctioned and that any unutilised amount must be returned to the Consolidated Fund of India along with interest.
The Ministry also said that since the projects were not completed within the stipulated period, the Central assistance released, along with the cost incurred in borrowing the amount from NABARD, would be treated as a loan to the state government and recovered under the applicable terms governing Central loans.
Subsequently, the Director General of Audit, Chennai, recommended recovery of the Rs 36.34 crore released as Central assistance along with interest of Rs 17.88 crore accrued up to January 2026 at 7% a year, taking the total recoverable amount to Rs 54.22 crore.
The Union government approved 11 PMKSY-CADWM projects in Telangana in March 2017, with a project cost of Rs 1,525.64 crore and Central assistance of Rs 1,722.61 crore, to be completed within three years.
Of this, Rs 36.34 crore was released during 2017-18 (Rs 10.22 crore) and 2018-19 (Rs 26.12 crore) for nine projects.
