Polavaram headworks incomplete after 17 years, power project progress only 12 per cent: CAG

Amaravati, Mar 7 (PTI) The headworks of Polavaram Irrigation Project remained incomplete even after 17 years as of March 2023, while the physical and financial progress of Polavaram Hydro Electric Power project stood at only 12 percent and 17 percent respectively, said the Comptroller and Auditor General.

The 17 years spans the tenure of previous Congress government during united Andhra Pradesh era as well as the previous TDP and YSRCP regimes post the state's bifurcation in 2014.

According to CAG’s performance audit of the Polavaram Irrigation Project (PIP) for the period 2017-18 to 2022-23, covering the TDP (2014-19) and YSRCP (2019-24) governments, Rs 7,423 crore was awarded for headworks or the main dam works required for water storage. However, only Rs 5,757 crore were spent.

“As of March 2023, Headworks/main dam works costing Rs 7,422.6 crore were awarded and an expenditure of Rs 5,757.4 crore was incurred. Even after a lapse of 17 years, the Headworks remained incomplete,” said the CAG report tabled in the Assembly recently.

On the tenders, CAG said works were awarded on nomination basis after duly revising the estimate, allegedly in violation of rules. It also flagged irregularities in finalisation of contract agency by altering tender conditions and rules, and selectively awarding works to a single contractor in contravention of government rules for ‘reverse tendering process’.

Between 2019 and 2024, the previous YSRCP government undertook ‘reverse tendering process’ for some projects.

The CAG recommended that the state government develop a fair and transparent tendering process, ensuring compliance with the prescribed rules and government orders to promote competitive bidding, among other measures.

It noted that the overall physical and financial progress of Left Main Canal (LMC) and Right Main Canal (RMC) stood at 76 percent and 72.6 percent respectively.

Against the land requirement of nearly 1.8 lakh acres for the project, the report said requisitions were filed for nearly 1.68 lakh acres but only an extent of 1.13 lakh acres or 67.4 percent was acquired up to March 2023.

Though the project involves the submergence of 373 habitations in 222 revenue villages, affecting more than one lakh Project Displaced Families (PDF), CAG pointed out that only 11,677 PDFs were shifted to Rehabilitation and Resettlement (R&R) colonies.

Incidentally, 213 R&R colonies were contemplated at an estimated cost of Rs 13,262 crore but as of March 2023, only 26 R&R colonies were complete while 49 more were in progress.

Elaborating on financial management and environmental aspects, the CAG said there was a drastic decrease in budgetary support for the project during 2019-23 (erstwhile YSRCP government) compared to 2018 – 19, under the previous TDP government.

Between 2017 and 2023, it noted that budget utilisation for the mega irrigation project ranged between 21 per cent and 66 per cent.

“The expenditure incurred was largely focused on works component, giving least priority to LA (land acquisition) and R&R activities. It is recommended that the state government ensure adequate budgetary support and enforce upon the Department (Water Resources) for optimum utilisation of allocated funds for timely completion of the project." Due to the delay in completion of socio-economic survey and approval of Detailed Project Report (DPR) by Polavaram Project Authority/Central Water Commission (CWC) for distributary network, the Revised Cost Estimate (RCE) submitted for 2017-18 price level by the Government of Andhra Pradesh (GoAP) remained unapproved by the Government of India (GoI).

Also, CAG highlighted that the construction of protective embankments for the submergence villages in neighbouring Chhattisgarh and Odisha, which were due to be completed by 2014-15, were not even commenced by Andhra Pradesh government.

Commenting on planning and execution of headworks and canals, CAG emphasised that deviation from the planned construction schedule and the absence of a contract agency to mitigate the flood situation, floodwater was obstructed from flowing through its normal course.

“The diversion of floodwater was not possible due to non-completion of construction of spillway and spill channel. This resulted in floodwater passing through available gaps of cofferdam, causing damage to the partially constructed cofferdams and D – Wall (diaphragm wall),” said CAG.

Moreover, it noted that the rectification of D-Wall was not undertaken as of March 2023.

PTI STH GDK ROH