The effect of newly introduced Goods & Services Tax regime on the contracted works of irrigation projects in Telangana is yet to be ascertained in full, Minister for Irrigation T.Harish Rao told the members of the legislative council on Saturday.
So far, the cost of the projects has risen by five to six per cent, while the total escalation is yet to be known.
With regard to the increase in project cost from Pranahitha-Chevella to Kaleshwaram schemes, he said the increase in ayacut, reservoir capacity and pumping capacity have resulted in proportionate cost escalation.
Besides, land acquisition cost which was only ₹1000 crore in the Pranahitha-Chevella project proposal, has increased to ₹7,200 crore owing to implementation of the modified Land Acquisition Act, 2013 in Telangana.
Relief and Rehabilitation has added ₹1,417 crore more, instead of the earlier ₹300 crore. On construction of sub-stations for the lifts, the cost has increased from ₹1000 crore to ₹3000 crore.
The project has so far received environment clearance, forest clearance, construction and machinery clearance, hydrology clearance, ground water clearance, and inter-state clearance, the minister said.
