Rs. 60,234 cr. overrun in projects, says CAG

The Maharashtra government has seen Rs. 60,234 crore cost overrun in its irrigation projects, says a report by the Comptroller and Auditor-General. The report on the management of irrigation projects was submitted to the State Assembly on Saturday, leaving the Water Resources Department red-faced.

The report shows that the estimated balance cost of Rs. 82,609 crore of 601 projects was nine times the capital grant of the WRD for 2012-2013. About 225 projects have been under execution for more than 15 years. As many as 77 projects have been in progress for 30 years. The report has details of irrigation projects up to June 2013.

“Projects were taken up without proper surveys, environment and forest clearances, acquisition of requisite land and non-rehabilitation of project-affected persons. As a result, there was enormous increase in the cost of the projects and delays in completion,” reads the report.

For instance, the implementation of the Vishnupuri project was initially approved in May 1979 at a cost of Rs. 32.24 crore. Significant delays and frequent changes in the scope of work led to an increase in the cost by Rs. 2,419 crore.

The report shows that cost overruns have taken place over and above the approvals and in violation of the Maharashtra Public Works Manual. An expenditure of Rs. 2,367 crore is seen in 100 ongoing projects, which is over and above the revised administrative approvals. Moreover, contract terms and conditions have been violated resulting in grating of undue benefits to contractors.

There were also discrepancies between irrigation potential created and used. As against 48.26 hectares of potential created, only 67 per cent or 32.51 hectares was used. The poor utilisation, according to the CAG report, was due to inadequate maintenance of dams and canals, siltation, inefficiency and insufficient water supply.