CAG raps government on Pattiseema project

By TheHindu on 02 Apr 2017

The Comptroller and Auditor General (CAG) picked holes in the much-touted Pattiseema Lift Irrigation Scheme (LIS), which the government had been showcasing as the first inter-linking of two major rivers, the Godavari and the Krishna, in the country.

The CAG report on the economic sector for the year ended March 2016 was tabled in Assembly on Friday.

The CAG, in its report, observed that the relaxation of ceiling on the tender premium and award of work at higher premium without completion of the Polavaram Right Main Canal and its distributary system had resulted in avoidable additional burden of Rs. 199 crore.

The CAG also observed avoidable extra expenditure of Rs. 138.18 crore due to unwarranted change in the construction methodology.

Incorrect reimbursement of the Labour Welfare Cess, though not required under the agreement, led to undue benefit of Rs. 14.22 crore to the contractor in the Pattiseema LIS, the CAG said.

Due to lack of canal system of adequate carrying capacity, only 11 of the 24 pumps of the PLIS were operated during the flood in July - September 2016. Thus, due to improper planning, the targeted objectives could not be achieved despite completion of the scheme.

The CAG did not consider the government’s projections on annual benefits from the LIS. It did not consider revenue from industrial water supply as industrial users had not been identified.

The CAG also noted that the life of the project was taken as 20 years in the DPR and depreciation was allowed accordingly.

However, the project was contemplated to run only till the completion of the Polavaram project in 2019.

“Thus, the life of the PLIS would be only three years,” the CAG observed.

Staff Reporter