Wastage of ₹321 crore of the hard-earned taxpayers’ money in Pattiseema Lift Irrigation Project.
In 2015, the Andhra Pradesh government undertook the Pattiseema Irrigation Project under its Lift Irrigation Scheme. The main purpose of the project was to provide water to domestic and industrial users by redirecting 80 TMC water from Godavari river. The project was named in the Limca Book of Records as it was the first such irrigation project in India and was completed within budget in a record time.
However, a report by the Comptroller Auditor General of India (CAG) in 2017 revealed that the project cost dearly to the taxpayers and amounted to at least ₹321 crore in loss to taxpayers. The report also highlighted many irregularities in allotment and execution of the project.
The government claimed that water supply to industrial units will generate a revenue to the government of ₹41.51 crore. However, there were no industrial units recognized as the beneficiaries of the project and of course, no revenue was realised. The state government also failed to identify the people who would benefit from the project. The Detailed Project Report claimed that the project will have a life of 20 years, which turned out to be only 3 years. The estimated cost of the Pattiseema Project was ₹1170.25 crore and reached ₹1427.7 crore at the time the contract was awarded.
The government also relaxed the limitation on the tender premium and provided a higher premium to the contractor that led to an avoidable expenditure of ₹199 crore. Further, an unnecessary change in the construction methods led to excess expenditure of ₹138.18 crore.
The Pattiseema Project was completed in 2016 at a revised cost of ₹ 1667.15 crore. The improper planning, irregularities, and favouritism led to the wastage of at least ₹321 crore of the hard-earned taxpayers’ money without achieving the desired objective.
