Response-Audit Report On Jalayagnam-Vol.2

Go To Contents Performance Audit Report on Jalayagnam
Response of Irrigation & Command Area

Development Department
to the Draft Performance Audit
Report on
Jalayagnam
Vol. 2
Irrigation & CAD Department. Government of Andhra Pradesh

July 2012
194
Table of Contents
Reference to Sl. No. Name of the Para Paragraph
17 18 19
Project Execution Status of Porjects Indira Sagar Polavaram Nettempadu Lift Irrigation Scheme (Jawahar Nettempadu Lift Irrigation Scheme) Handri Neeva Sujala Sravanthi (Ananta Venkatarami Reddy Handri Neeva Sujala Sravanti Galerau Nagari Sujala Sravanthi (Sri Krishan Devaraya Galaru Nagari Sujala Sravanti) Pranahitha Chevella Sujala Sravanthi (Dr. Bheem Rao Ambedkar PCSS) Srisailam Left Bank Canal Tunnel Scheme (Alimineti Madhava Reddy Project) Indira Sagar Dummugudem Lift Irrigation Scheme Rajiv Dummugudem Lift Irrigation Scheme
5 5.1 5.2
20
5.3
21
5.4
22
5.5
23
5.6
24
5.7
25
5.8
26
5.9
195
27
Devadula Lift Irrigation Scheme (J. Chokka Rao Godavari Lift Irrigation Scheme) Chitravathi Balancing Reservoir (CBR) Right Canal (Lingala Canal) and Lift Irrigation Scheme Gandikota - CBR Lift Irrigation Scheme Modernization and Micro Irrigation of Pulivendula Branch Canal Somasila Project Somasila Swarnamukhi Link Canal Telugu Ganga Project (N.T. Rama Rao Telugu Ganga Project) Jyothirao Phule Dummugudem Nagarjunasagar Tail Pond Veligonda Project (Poola Subbaiah Veligonda Project) Yellampally Project (Sirpadasagar Yellampally Project) Bhupathipalem Reservoir Project Kanthanapally Sujala Sravanthi (P.V. Narasimha Rao Kanthapally Sujala Sravanthi) Sri Komaram Bheem Project Sriramsagar Project - Stage II Thotapally Barrage Project and Gajapathinagaram Branch Canal
5.10
28
5.11
29 30 31 32 33
5.12 5.13 5.14 5.15 5.16
34
5.17
35
5.18
36
5.19
37
5.20
38
5.21
39 40 41
5.22 5.23 5.24
196
42
Vamsadhara Project - Stage-II (Bdooepalli Rajagopala Rao Vamsadhara Project) Uttarandhra Sujala Sravanthi (Dr. Babu Jagajjivan Ram Uttarandhra Sujala Sravanthi Venkatanagaram Pumping Scheme Project Completion Creation of Irrigation Potential Completion of Projects Completion of Packages Quality Assurance Monitoring Project Monitoring System Financial Management Budgeting Funding under Accelerated Irrigation Benefit Programme (AIBP) of GOI Allocative Pririties Impact on State finances Conclusion
5.25
43
5.26
44 45 46 47 48 49 50 51 52 53 54 55 56 57
5.27 6 6.1 6.2 6.3 7 8 8.1 9 9.1 9.2 9.3 9.4 10
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5. PROJECT EXECUTION: 5.1 Status of the projects In the year 2004, the Government of A.P. has given top priority for irrigation and identified 26 projects to be taken up as Prioritized Projects and subsequently the number of projects proposed under Jalayagnam increased to 86 Nos including 12 Nos Flood Banks & Modernization works at an outlay of Rs.185609.35 Crores. Four projects are yet to be taken up viz., Uttarandhra Sujala Sravanti, Kanthanapally LIS, Modernization of Yeleru System and Modernization of Nagavali System. The details of 74 Irrigation projects (excluding Flood Banks & Modernization works) are as follows:
No. of Irrigation REGION projects proposed under Jalayagnam Coastal Telangana Rayalaseema Total 21 30 23 74 Estimated cost (Rs in crores) 30356.11 105433.96 32656.69 168446.76
So far 82 projects are grounded. Of these, 13 projects (including one more project i.e Ralivagu Project during 2011-12) have been completed i.e 6 Nos in Andhra Region, 3 Nos in Rayalaseema Region and 4 Nos in Telangana Region. Out of the remaining 69 ongoing projects, partial IP is created in 22 projects and they are at various stages of construction as below.
198
Region
No. of projects 20 27 22 69
Financial Progress Above 50% 9 20 13 42 Below 50% 11 7 9 27
Coastal Telangana Rayalaseema Total
5.1.1 Non-receipt of clearances ISRLIS: There are no railway lines National Highways and Gas Pipelines crossing in these schemes. RDLIS: There are no National Highways and Gas Pipelines crossings. Proposal of 9 railway crossings were submitted to the railway authorities for according permission and for balance 3 Nos, proposals are awaited from the agency. JRPDNSS: Proposals for 4 Nos. Railway crossing and One National Highway crossing are awaited from the agencies. Jawahar Nettempadu: The required amount payable to the South Central Railway authorities have since been deposited and the bridges are in tender stage. Sripada Yellampally Project: In Sripada Yellampally Project,
199
non
receipt
of
clearances
have
not
affected
the
project
completion time. Permissions were obtained from the authorities concerned for the electrical poles, Power lines, shifting of towers and the same are being shifted simultaneously during the execution of the work. The works are under progress without any obstruction. Pulichintala Project: No pending clearances in respect of Pulichintala Project. Polavaram Project: The audit pointed out that clearances were received, involved change in scope of work in Indira Sagar Polavaram Project, which resulted in disputes with the contractors and preclosure of works mid way. This is not correct. The reasons for the pre-closure are due to slow progress, lack of co-ordination etc., partly attributable to the contractors. In respect of ISPP canals, the Irrigation Department is constantly pursuing the clearances from HPCL/GAIL authorities. However the same are delayed due to the nature of the crossings i.e. inflammables are involved and the HPCL/GAIL authorities are considering all the safety precautions in designing such a huge crossings and hence the delay and there is no laxity on the part of the Irrigation Department. Moreover the delay is not at all a hindrance to overall progress of the work as the length involved in such crossings is very small when compared to the total length of the canal.
200
Similarly, the canal is also crossing N.H-5/16 at 10 locations. Number of permissions is required for National high way crossings from the Government of Andhra Pradesh and Government of India which is a lengthy process. Action was taken to deposit the amount requisitioned by NHAI and the authorities have been frequently pursued. In addition, there are two railway crossings in package-8 of ISLMC for which necessary amounts have been deposited as per the requisition of the Railways and the authorities are being pursued to expedite the work. B.R.R Vamsadhara Project Phase-II of Stage II : 1). In principle consent of CWC clearance: As per IS Agt of 1962 AP is entitled to utilize 50% share of Vamsadhara waters. Accordingly the proposals for In-Principle Consent from the Central Water Commission were submitted to Chief Engineer, PAO(s), Central Water Commission, New Delhi vide letter dated 25.8.2005. The replies for remarks communicated by the Central Water Commission in this regard were submitted during 02/2006. Subsequently, in compliance to the decisions taken during the interstate meeting held on 24.04.2006, the Detailed Project Report for Vamsadhara Project Phase-II of Stage-II was prepared and submitted to the Central Water Commission and Government of Orissa in anticipation of In-Principle Consent of CWC on the proposals of Vamsadhara Project Phase-II of Stage-II . remarks of CWC on DPR are being attended to . The
201
2). R&R Clearance : The proposals for obtaining clearance from Ministry of Tribal Affairs regarding the implementation of R&R were submitted to the Government. However, the Government have remarked to revise the R&R cost proposals in the light of G.O.Ms. No. 76, dated 13.4.2006. Since the R&R is being taken up phase-wise, the Project authorities have requested the Government to recommend the R&R proposals to MOTA. The clearance from MOTA is being pursued. 3). Investment Clearance: In respect of Vamsadhara Project Phase-II of Stage-II, the clearances involved at various ministries are being pursued. Certain clearances like Environmental clearance, Forest clearance were obtained from concerned ministries (MOEF). Meanwhile , the cost of the project is being met from the state Plan funds . On receipt of necessary / balance clearances from ministries, investment clearance will be obtained from planning commission. The main contention of the I&CAD Department, expressed in discussions, was that the Department could not afford to wait for fulfillment of these pre-requisites, since this would take an
202
unduly long time. Hence, advance action for tendering , contracting and project execution was initiated, alongside action for obtaining of clearances / land acquisition.
THOTAPALLI BARRAGE PROJECT EPC PACKAGE No-II The works of the canal system is likely to have several crossings for National Highway, State Highway, Other Roads, Railway Lines, HPCL Oil pipelines, GAIL gas pipelines, Water pipelines etc., and as such necessary letter to grant the permission for crossing those premises shall be issued to the respective authorities by the Engineer-in-Charge. However the Contractors will have to keep the follow-up and obtain timely clearance from the concerned authorities costs of those crossing are included in the Bid except the crossings pertaining to railway lines.
203
The Government in Memo. No.17873/Major.Irr.1(2)/2006-15, Dt:26.06.2007 has issued instructions as Deletion of execution of bridge across canal system on National Highway Authority of India from the purview of EPC contract. Further it was stated that the quantum of work to be deleted from the scope of the EPC contract is to be assessed by the State Level Standing Committee Constituted vide G.O.Ms.No.144, I&CAD (Reforms) Department, Dt: 13.06.2007 and submitted the proposals to the Government for approval of effecting the deletion from the EPC Agency and it should be ensured that the contracting agency also give their concurrence for the deletion without giving scope for raising further disputes. In Package-II there are two NHAI Crossings. One on Srikakulam Branch Canal and another on Vizianagaram Branch Canal. It is further ensured that the contracting agencies also give their concurrence for deletion without giving scope for raising further disputes.
1)
The construction of all bridges across the canals falling
with in the Jurisdiction of National Highway Authority of India shall be deleted from the purview of the EPC contracting agency.
204
2)
The construction of these deleted portion of bridges will
be taken up by the NHAI and the necessary amounts will be deposited by the I & CAD Department in favour of NHAI. As per the Government Memo the process of deletion of construction of all bridges across canals falling in the jurisdiction of NHAI Authority from the purview of contracting agency is in progress. After approval of the above proposal, the amount towards NHAI crossings will be deducted from the agreement value of the agency. NHAI policy is to investigate, design, execute, and maintain them for specified period including concessionaire profit and overhead charges. Further, they are insisting to provide additional lanes keeping in view the future needs resulting in extra cost, which are not binding on agencies. Thus the cost of bridges taken up by NHAI are costing more.
205
5.1.2 Land Acquisition Land Acquisition is a major activity and also a major hurdle in construction of Irrigation Projects and in particular when so many Irrigation Projects are taken up simultaneously. For speeding up the Land Acquisition, the EPC agency will prepare Land Plan Schedules and submits to the Department for further processing with Revenue authorities. Land Acquisition involves Government lands, Patta lands, Endowment lands, Forest lands, Court cases etc., and considering all these points, the Government for speedy completion of Land Acquisition in various projects, 5 posts of Special Collectors, and 44 posts of Special Deputy Collectors were created and persons appointed to work under Irrigation Department. District and State Level Negotiating Committees under the Chairmanship of District Collectors and Chief Commissioner of Land Administration (CCLA) respectively are also constituted with suitable delegation of powers to acquire litigation free land from land owners facilitating Consent Awards. The Consent Awards are passed after discussions with the land owners, duly paying higher amounts than Registration value and the farmers are generally satisfied with the compensation given to them. A land bank is also created towards compensatory afforestation lands for acquiring Forest land expeditiously. The Land acquisition process gets delayed due to various Court cases. There was also delay due to shortage of sufficient staff in the cadre of Deputy Tahsildars, Special Surveyors and Officer cadre staff in L.A. Units. To overcome shortage of Field Surveyors and other staff, Field staff are being pooled up from
206
different Units to attend the pending Land Acquisition work identified by Project authorities. Special Collectors, LA were permitted by the Govt for engaging retired Surveyors on out sourcing basis to expedite the L.A. survey. Inspite of above delays, the arrangements / efforts made by the Government has so far enabled to achieve remarkable land acquisition of about 6 Lakh acres (upto 03/2012) in a short period of time. TABLE-5.4
REGION REQUIRED REQUISITIONED
(in acres)
ACQUIRED BALANCE
COASTAL RAYALASEEMA TELANGANA TOTAL
253089 295891 370431 919411
204528 294591 276603 775722
142677 255465 198960 597102
110412 40426 171471 322309
Hence the audit remark that the Government failed to fulfill its obligations relating to acquisition and handing over of land to the contracting agencies in time for speedy execution of work is not correct. ISRLIS: 5716.97 acres of Non-forest is land required for entire Project in which 937.26 acres land already acquired. land acquisition is well in advance stage. RDLIS: 6192.57 acres of Non-forest is land required for entire Project in which 730.35 acres land already acquired. land acquisition is well in advance stage. The Superintending Engineer, Executive Engineers, Deputy Balance Balance
Executive Engineers and Section Officers are constantly pursuing with the District Collector, Special Collector (LA) and Special
207
Deputy Collector (LA) for early completion of land acquisition.
Jawahar Nettempadu:
The land acquisition authorities are
being pursued constantly by the Superintending Engineer and the field Engineers for early land acquisition. 85% of the required land is acquired and the balance 15% is in differenct stages of acquisition. Projects in Kadapa: The Audit made a comment that the I & CAD Department failed to acquire adequate land required for the Projects under Jalayagnam on time. Various factors influence the process of Land Acquisition. The predominant factors affecting the speedy acquisition are as under. 1) As many projects are taken up at a time, large extents of land were required for construction of these Projects. The sequential activities in L.A process like survey, DN & DD etc., cannot be taken up at a time for all these Projects with the available Revenue Staff especially experienced Surveyors and has to be done simultaneously Project wise. 2) The land owners in some areas are creating hurdles demanding for higher compensation. 3) In some areas, the land owners are unwilling to part their costly gardens and are not even co-operating for peg
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marking. 4) Paucity of funds. This Department is constantly bestowing its best efforts in co-ordination with Revenue authorities in overcoming the hurdles encountered in Land Acquisition. Projects in Kurnool: I & CAD department have sent the LA proposals to LAO immediately after receipt of EPC agencies. The lands were to be acquired by LAO after following the procedures of their department. Land acquisition generally gets delayed when there is dispute between land owners and LAO on quantum of compensation. Sometimes, the land owners approach the courts for higher compensation. These are unavoidable instances and beyond the control of this department. If the works are taken up after the completion of land acquisition as suggested by Audit, the department have to wait up to the completion of land acquisition and resolution of court cases and after that the works are to be tendered and grounded with rates as on that date. Even in this procedure gets delayed and higher rates are inevitable.
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Table- 5.4 Sripada Yellampally project - Status of Land Acquisition Total Name of the Project Land Required (in Acres) Land Requisitio ned (in Acres) Land to be acquired (in Acres) Rema rks
Land Acquired (in Acres)
Sripada Yellampally Project - Stage I Phase I - Barrage 16085 16085 12592 3493
LA Sripada Yellampally Project - Gates Not requi red NTPC LIS (8.50 TMC) Manthini LIS (2.00 TMC) 56-03 581 56-03 581 56-03 133 NIL 448 1 Ha of Fores SYP- Stage II Phase 5430 5430 2732 2698 t Land to be acqui red Kaddem LIS (3.00 TMC) 85-24 85 54 31
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Canal Network Package No I Canal Network Package No III Total:
1500
354
35
1465
1646
1646
699
947
25383
24237
16301
9082
As shown above, In Sripada Yellampally Project, total land is acquired in the NTPC Lift Scheme and nearly 80 % of the Lands are acquired in submergence area of barrage. In rest of the Packages nearly 40 % of the land is acquired and the progress of work is Proportional. In I & CAD Department, earlier to adoption of EPC System, the Major Irrigation projects like SriramSagar and Jurala were executed under Lump sum Contract system where the Designs and Land Acquisition are completed before entrusting the work to the Agency. It can be observed that the time taken and cash overruns are more than that of EPC System in creation of Ayacut for the Public. Pulichintala Project: As against 24,605.83 Acres, 23,350.57 Acres is already acquired. Acquisition of balance land is under process. R & R works are programmed to be completed by the end of July 2012. Projects in North Coast: With regard to the observation of the PAG that the I & CAD Department failed to acquire adequate land required for any of the projects under Jalayagnam on time and the apprehension
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of the PAG that the provision towards land compensation already made by the department is likely to increase in light of new national land compensation policy to be enacted, the reply is as follows:
The Government of Andhra Pradesh in order to expedite the land acquisition process speedily have established several Special Deputy Collector units in projects depending upon the size of the project and the land involved. However the land acquisition process is bound to have problems from public in any irrigation projects which have to be sorted out amicably. Further the land acquisition would also involve disposing off court cases related to Land Acquisition which would invariably delay the land acquisition process. These hindrances are unavoidable and every effort is being made by coordinating with the revenue authorities for acquiring the land required for the projects. Details of Land Acquisition Particulars as of April 2012 in respect of each Project is submitted as separate Statement 5.1.2. The total extent of land required for all the above projects under the control of this unit is 37,765.55 Acres, the extent of land requisitioned is 35,800.18 Acres out of which 31,227.64 Acres has been acquired and the balance extent of land to be acquired is 6,537.91 Acres.
212
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5.2 Indira Sagar Polavaram Project 5.2.1 Project Formulation and Basic Information No Comment 5.2.2 Preparation of Detailed Project Report Polavaram Project: The modified DPR for Rs.10,151.00 Crores was resubmitted to the CWC in April 2005 with no delay. The CWC recommended to adopt Probable maximum flood (PMF) of 50 Lakh cusecs from safety point of view. The design flood for upstream submergence is not changed for 36 Lakh cusecs. The contracts for ECRF and spillway were preclosed for the reasons partly attributable to the agencies and other reasons not attributable to agency. Hence the contention of the audit in this regard is not correct and hereby denied. The Planning Commission, Government of India in file No.2 (168)/2004-WR, Dt.25.5.2009 has given investment clearance for the said amount of Rs.10,151.00 Crores. The Technical Advisory Committee (TAC) has given their approval for Rs.16,010.45 Crores as per the Detailed Project Report prepared with the SSR of 2010-11. Immediately after pre-closure of contractors of Spillway, Earth cum Rock fill Dam and execution of foundation of 960 MW Hydro power house tenders were invited in 8/2009. But, there was no
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response. The Government in 06/2011 had accorded permission to go for fresh Tender call for a combined work Spillway, Dam and Excavation of foundation of 960 MW Hydro Power House. The tenders are floated during 06/2011 and moderate response was received. But due to various implications involved in the The Tenders are offers received, the Government took a decision to cancel the Tenders and to go for fresh Tenders again. invited and last date for receipt of tenders is 5.07.2012. There is no lapse on the part of Department in selecting a new agency. The project is found to be economically viable and technically feasible even after considering the revised cost based on SSR 2010-11. 5.2.3 Benefit Cost Ratio The project is found to be economically viable and technically feasible even after considering the Revised cost based on SSR 2010-11.
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5.2.4 Project Approvals & 5.2.5 Environmental clearance Polavaram Project: (5.2.4 & 5.2.5) The Tenders for the works in Indira Sagar Polavaram Project were invited in anticipation of approvals on pre-requisite clearances so as to gain time in completion of Project. But, unfortunately, unlike other projects, this project has faced some unprecedented circumstances after grounding the works. To alleviate such hurdles and in accordance with the suggestions of Central Empowered Committee, the Government took a decision to stop the works from May, 2006 to April 2007 with an intention to obtain the pre-requisite clearances in a smooth atmosphere. In fact, there are so many other constraints came across even after allowing to proceed with the works by Government in 04/2007. All these impediments are certain, even if all these works start only after obtaining all statutory clearances. However, the Government is planning to complete the project in a time bound manner. 5.2.6 Clearance from Central Water Commission Polavaram Project: The Detailed project report has been submitted to Central Water Commission (CWC) during 1983 and remarks to the comments were attended by the project authorities from time to time at CWC. The scrutiny at CWC for most of the important components like Hydrology Directorates, FE &SA Directorates, Interstate issues are at advance stage and expecting clearance from
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Technical Advisory Committee (TAC).
The project is strictly in
accordance with GWDT award and in view of utilizing Godavari waters which is otherwise going waste. Expecting TAC clearance early is not an over ambition and hence the project has been started in stages. All the clearances have been obtained as expected. 5.2.7 Inter State issues Polavaram Project: All the submergence issues with neighboring states Orissa and Chhattisgarh (erstwhile Madhya Pradesh) in respect of Indira Sagar Polavaram Project were resolved during 1980 itself by concluding Interstate Agreement on dt.02.04.1980 with party states. This aspect was clarified by the GWDT under clarification no.8 raised by state of Madhya Pradesh (now Chhattisgarh) and is reproduced below from (GWDT Award, 1980) . Clarification sought by Madhya Pradesh: In using the waters permitted to each state in these agreements, no state can construct a project (s) submerging the territory of another state (s) without prior consent and acceptance by mutual discussions between the concerned states except as specifically agreed to under any of these agreements. Reply of GWDT: All cases of submergence including submergence of the territories of the state of Madhya Pradesh (now Chhattisgarh) and Orissa (now Odisha) as a result of the Polavaram Project of Andhra Pradesh, have already been settled by the party states in the various agreements filed by them before us. At this stage we do not think it necessary to incorporate such a general clause in the final order. Further report of GWDT, 1980
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Further the fact that the CWC and planning commission accorded the clearances and extended central financial assistance under AIBP to this project show that the CWC/MoWR after being satisfied that all interstate issues in respect of this project had been resolved,accorded Techno-economic clearance. Accordingly the planning commission accorded investment clearance to the project. Godavari Water Disputes Tribunal was formed by
Government of India to resolve the interstate issues regarding construction of Polavaram Project during 1969. After a lot of deliberations, between the riparian states an Interstate agreement has been entered between the states of Andhra Pradesh, Chattisgarh and Orissa on 2.4.1980 paving the way for the construction of Polavaram Project with FRL/MWL +150Ft,. The Godavari Water Disputes Tribunal gave its final award on 7.4.1980 called GWDT Award 1980 in which the interstate agreement 2.4.1980 made a part. The GWDT in its final order stated as follows: The Polavaram Project shall be cleared by the CWC as expeditiously as possible for FRL / MWL + 150Ft. The design of the dam and its operation schedule shall be left to the Central Water Commission, which they shall decide keeping in view all the Agreements between the parties, including the Agreement of 2nd April, 1980. If there is to be any change in the operation schedule as indicated in the agreement of 2 nd April, 1980 it shall be made only after consultation with the States of Andhra Pradesh, Madhya Pradesh and Orissa. The design aspects shall, however, be left entirely to the Central Water Commission. Thus, in accordance to GWDT Award, 1980, all the Interstate issues related to the construction of Polavaram Project
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have been resolved. Hence, the contention of audit that Indira Sagar Polavaram Project was taken up without entering into formal agreements with affected states although required under the existing water sharing agreements / Tribunal awards is baseless, incorrect and hence denied. 5.2.8 Tendering & Entrustment of Works 5.2.9 Status of the Project Polavaram Project: The Government has taken decision to pre-close the contracts of spillway and ECRF Dam due to change in the scope besides several other reasons. pre-closure of contracts, tenders 08/2009 it self. Immediately after invited during The were
However, there was no response.
Government in 06/2011 accorded permission to call for fresh tenders for Spillway and ECRF Dam clubbing with excavation of foundations of 960MW Hydro power station. Accordingly, tenders were invited during 6/2011 and a moderate response was received. But, due to some technical reasons, the Government had decided to cancel the tenders and to go for fresh tender call. Based on these instructions, tenders for the clubbed work have been invited again during 4/2012 posting the last date for receipt of tenders on 05-7-2012. Regarding completion of structures in the Head works, that those could not be completed as scheduled due to some un expected hurdles including delay in forest clearance. The
219
structures on Head works are now in progress and will be completed in a time bound manner. The Agency has concluded the Agreement in respect of ECRF Dam vide Agrt. No.1/2006-07, Dt.11.08.2006 Work Order was issued on 07.07.2007 by the SE/ISHW Circle, Dowlaiswaram. The decision of preclosing the contract is not due to change in designed discharge as stated in Audit.
The contracting agency started the execution of work in 07/2007. The contractor has carried out the work upto 05/2009 and stopped the work suddenly. the progress of work. Department has issued several notices for resuming the work and to improve In reply the contracting agency, has attributed the reasons for slow progress of work i.e., (1) Delay in L.A. & R&R (2) Delay in Approval of Designs by CWC etc., showing the above reasons the agency has not resumed the work. Hence the Department has taken steps to terminate the contract duly issuing notice under clause 61 of APDSS. Government has taken up the issue and had The detailed
discussions with Department as well as with the executing agency and finally decided to pre-close the contract and to settle their claims amicably and reasonably to avoid legal and contractual obligations. EPC, Dt.28.08.2009 Accordingly the Agreement was prethe same is ratified by the closed vide Superintending Engineer Letter No.DB/ATO.3/W/48 and Government vide Govt., Memo. No.22241/2009, Dt.27.08.2009 & 24676/2009, Dt.23.09.2009 (Minutes of Meeting chaired by Honble Chief Minister, Dt.23.09.2009)
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In respect of Spillway work the PMF is not main criteria to close the work. 2006. The It is true that the CWC has recommended for the pre-closure were partly the PMF of 50 lakh cusecs for the design of Spillway during reasons attributable to the agencies. The contention of the audit is not correct.
As stated in performance audit report not even a single structure was completed in any of the connectivity works even after six years is not correct. In Right side connectivities, under package 62 two main structures i.e., OT regulator and P-head regulator and depletion sluice of Fsaddle dam are in progress. While the OT-regulator and depletion sluice are nearing completion. The work on P-head regulator is completed to an amount of more than 50%. Similarly on left side connectivities under package-67 four structures i.e., lock-I, II, III and syphon work taken up. While the syphon work is completed the civil works on the remaining three locks are nearing completion. Further the tunnel work inrespect of Package-63, 64 & 66 are in good progress. So the contention of audit that only earth work and no structure was done even after six years is not correct and hence denied.
The work of Earth work excavation for foundations of ISPHEP is included in the present tenders called for ECRF Dam and Spillway of Indira Sagar Polavaram Project vide
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Tender notice No. 1/2012-13, Dt. 16.04.2012. The tender is under process. The action for commencing of HE project will be taken up after commencing the work in ECRF and spillway of ISPP.
Indira Sagar Left Main canal Government have accorded administrative approval for Rs. 1954.74 Crores vide G.O.Ms.No. 104, Dt: 30.05.2008 for execution of Left Main Canal works. The Canal runs for a length of 181.50 Kms in East Godavari and Visakhapatnam Districts. For execution purpose, the Canal is divided into 8 Packages. All the works are grounded and works are in progress.Out of 445 structures, 67 are completed and 83 are in progress. The percentage of work done is 52%. The total extent of land required is 10540.92 Acres under the Left Main Canal. The extent of land so far acquired is 10251.84 Acres (97%). Indira Sagar Right Main canal Government have accorded administrative approval for Rs. 2240.688 Crores vide G.O.Ms No.150, Dt: 23.07.2008 for For execution of Right Main Canal. The Canal runs for a length of 174 Kms in West Godavari and Krishna Districts. execution purpose, the canal is divided into 7 Packages. All the works are grounded and the works are in progress. Out of 248 structures 93 are completed and 22 are in progress.The percentage of work done is 64%. The total
extent of land required for Right Main Canal in 12687.70 Acres. The extent of land so far acquired is 10749.80 Acres (85%). The handing over of Forest land to Department is in
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progress. The construction of R&R colonies in respect of balance 6 villages in West Godavari District and 3 villages in East Godavari District are in progress. All out efforts are being made to complete the R&R in respect of those villages at the earliest possible. Action plan has been drafted to complete the R&R plan of all the effected villages in a phased manner atleast one year before impounding of water in the reservoir. The major issue effecting the progress of the works of the 6 packages of connectivity works is obtaining forest clearance from MOEF. The forest clearance has been obtained and the forest land required for the works are handed over to the respective agencies recently. The other small hurdles like shifting of Satya sai drinking pipe lines, Land acquisition problems etc., will be resolved and works will be completed as per the schedule. Regarding permissions required regarding railways and NHAI lines, shifting of various utility pipe lines will also be resolved simultaneously and works will be completed as per the targets. 5.2.10 Issues relating to Synchronization of Activities Polavaram Project: The ISPP has been taken up with a systematic and synchronized planning to complete all the project components simultaneously and reap early benefits. But during construction of major projects like ISPP across mighty river Godavari with lengthy canals, several unexpected problems like site specific issues, Land Acquisition problems, R&R issues, Court interventions, foundation problems, design issues etc., are encountered which will affect the planned programme. Such real was planned in methodical,
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time problems are inevitable in synchronized manner certain
execution of such huge dam projects. Even though the project
unexpected
problems
like
foundation
problems,
court
interventions, technical issues, R & R and land issues etc., resulted delay in execution of the various components of work which is quite natural in major projects. The contention of Audit that any problems that encountered during the course of execution of a project, it is only due to improper planning and whatever expenditure incurred on the project is as on that project as on that date is unfruitful expenditure is not at all correct. The project to be works were awarded after finalization while of design the parameters only. Some times the design parameters finalized are modified during executing approving working/construction drawings. The contention of the Audit that the works were awarded without finalization of parameters is not at all correct. All the basic design parameter were very much incorporated in the agreements concluded for the works. The Detailed Project Report (DPR) was submitted to Central Water Commission (CWC) for scrutiny considering MFD of 36.0 lakh cusecs. The Central Water Commission has also accorded Hydrological clearance for 36 lakh cusec in 1979. Subsequently in 2005, the CWC insisted to submit Probable Maximum Flood (PMF) studies to consider that flood from safety point of view as per latest BIS codes. Accordingly the PMF studies were submitted to the CWC. The CWC recommended to consider probable maximum flood peak of 1,41,435 cumec (50 lakh cusecs) for the design of Spillway from the safety point of view which is purely a technical reason. The contention of audit that the contractors had to be closed prematurely due to change in the basic parameters due to change in the discharge from 36 Lakh cusecs to 50 Lakh cusecs is not at all correct. The contracts were preclosed due to the reasons
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attributable to the agencies as well as the reasons not attributable to the agencies. The contention of audit that the Government hastily awarded Spillway and ECRF works is not at all correct. All the required design parameters have been fixed before award of contract and incorporated in Bid documents itself. Under EPC contract system, the designs after detail survey and investigation are to be furnished by the EPC contractor and after thorough scrutiny by department the same will be transmitted to CWC for scrutiny and approval. The execution of work will be taken up as per approved drawings only. Accordingly the construction drawings have been submitted to the Government for PMF of 50 Lakh cusecs. As already stated, the contracts were preclosed on account of slow progress of works due to the reasons attributable to the agency as well as other reasons not attributable to the agency. After preclosure of the contracts tenders have been called for and the tenders received are under process. The observation of the audit that the state of Andhra Pradesh was deprived of 35 TMC of water out of river Krishna to upper states of Karnataka and Maharashtra from the date of clearance of Indira Sagar Polavaram Project is not correct. As on today the upper states of Karnataka and Maharashtra are not utilizing the additional 35 TMC of water out of Krishna river from the date of clearances of ISPP. Indira Sagar Polavaram Project is a major multi-purpose project taken up across river Godavari to utilize water which otherwise will go as waste to sea and is very important for overall hurdles development will come in of the the State The and during the is construction of such major projects several unexpected way. Government
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determined to circumvent all such hurdles and complete the project in the scheduled time. Construction of any major multipurpose project especially across major river like Godavari will take considerable time. In order to complete the project early, stiff targets/milestones have been programmed to strive for better progress. In the case of execution of projects especially dam projects several problems will be encountered. On account of such problems it is inevitable to reschedule the targets/milestones duly giving consideration for resultant delays. The audit observing such delays as failure to reap early benefits is not correct. It is reiterated that the contention of the audit that the contracts of ECRF and Spillway were preclosed due to increase of design discharge from 36 Lakh cusecs to PMF of 50 lakh cusecs is not correct. Therefore the presumption of the audit that had the Government immediately taken a decision to pre-close the contracts in September,2006 when the decision to increase the designed discharge by Central Water Commission was taken instead of waiting for 3 years, it would have saved Rs.1049 Crores is not correct. The CWC has not takenup the scruitiny of designs of spillway and earth cum Rock fill dam submitted by the agencies till the TAC clearance for the project is accorded in January 2009. Therefore Government is not in a position to take a decision to pre-close the contract in September 2006 as the changes suggested by CWC could not be predicted at that time.The presumption is hypothetical and not based on facts. Hence, the question of saving the cost difference between the SSR of 2007-08 to 2010-11 does not arise.
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The audit has observed on account of pre- closure of contracts of ECRF & Spillway the Government had to admit a claim of contracts for Rs.19.39 Crores for the reasons outside the ambit of the agreements. Most of the claims of the contractors admitted by the Government are pertaining to the infrastructure works like approach roads, procurement of dumping areas, deposits paid by the contractors to AP Transco authorities made use of by the new executing These available infrastructure etc., which can be agencies to be fixed. are specifically
works
mentioned in the bid document and the prospective bidders are requested to quote their bid prices keeping availability of these infrastructure facilities also in view. Hence, the contention of audit is not correct. The provisions of the agreement under clause 16 & 17 of G.C.C and Clause 50 of APSS stipulates the contracting agencies for taking Insurance policies to cover all types of risks including natural calamities. This will safe guard exchequer against any type of risk. the So, the contracting
agencies have taken the Insurance policies in terms of provisions of agreement, from the start date to safe guard the works, plants and materials, equipment, property, personnel against possible risks like the act of God or natural calamities or accidents. The respective firms have paid the Insurance premiums as given below. 1. Spillway 2. ECRF Dam: : Rs.2,77,80,330 Rs.5,11,83,412 Total Rs.7,89,14,742
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As this is a major project involving lot of critical operations viz., exploration of foundations, blasting operation, usage of heavy earth moving equipment in the hilly terrain, river surveys, soundings, Geo-physical surveys, Hydrographic survey even during floods which involves lot of risk to men, material, equipment etc., insurance policy is necessary. The contracting agencies also faced several difficulties due to natural calamities like floods, cyclones, manmade disturbances through local agitations and also accidents caused during operation of heavy machinery. Thus the insurance has covered several risks uncovered during execution of work. As the subsisting contract of both Spillway and Earth cum Rock fill Dam was pre closed, both the firms have claimed for the reimbursement of insurance paid. However the State Level Standing Committee admitted the claim to a tune of Rs. 4.0 Crores and Spillway Rs. 2.39 Crores for Earth cum Rock fill Dam and duly deducting proportionate amount respectively
towards work done. Survey and Investigation 6.98 Crores: There is a Provision of Rs. 10.00 Crores towards Survey Preparation of L.P. Schedules, Investigation and designs etc., After concluding the Agreement the contracting agency has attended to the investigation, alignment proposals, submission of L.P. Schedules and design proposals for GapI,II,&III. Based on the proposals submitted by the Agency (1) Land acquisition was taken up & completed (2) Alignment proposals in gap gb, gg & gb were finalized (3) The detailed designs for Gap I,(gd) Gap (gg), Gap III (gb)
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and diaphragm wall for gap II, submitted to Central water commission duly verified by the Chief Engineer, Central Designs Organization, Hyderabad. The contention of the audit that an amount Rs.6.98 Crores was paid towards survey and investigation for which no reports were made available is not at all correct. All the surveys/ Designs carried out by earlier agencies are available with the Department and will be made available to the new agency and balance survey/Designs work only will be got done from the new agency. Hence the question of wasteful expenditure of Rs.6.90 Crores does not arise. The observation of the audit that the expenditure of Rs 2023 Cr incurred upto 5/2011 on connectivities (Rs 161 Cr); Left main canal (Rs 755 Cr) and Right main canal (Rs 1107 Cr) would become unfruitful for the next five years is not correct. Any major project especially will take considerable time for dam projects and any completion
expenditure incurred on the project till its completion cannot be treated as un fruitful expenditure. Further, it is invetible to programme or schedule the works matching with availability of funds and site conditions, nature of work etc. The contention of audit in this regard is not correct. Further the observations of audit that most of the contracting firms were not evincing any interest in execution of concrete items like lining and CM&CD works is not correct as these works are under progress in both the canals. The question of losing the excavation work done in canals due the delay doesn`t arise. The observation of the audit that the original tendering process of
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Agreement, 2004 initiated in hastiness was poorly sequenced is not correct. Generally execution of projects and obtaining clearances will go on simultaneously, as the Government is very keen in completing the pending irrigation projects on top priority under Jalayagnam. Government of several such projects, court intervention were encountered in respect of this project only. The contention of the audit, that the project works are to be taken up only after getting all clearances, completing all investigation and designs for construction/ working drawings; completion of L.A. process; completion of R&R etc., is not at all correct. Even by such arrangement, the escalation of the project cost on account of time taken for completion all the formalities like clearances, L.A, R&R, Designs etc., will be much more than the present system where delays are in respect of certain portion of works only where problems are encountered. Generally the canal & distributory system works are scattered and takes more time for completion than the head works which are located at one place. In respect of canals, even though substantial portion of works are completed, it will take quite a long time to complete balance works especially problematic. Stretches held up due to local problem, ryots objections, court cases etc., The works pertaining to balance distributory system are to be taken up. If the canal works which are scattered are not taken up early as there works will take more time for completion in the light of real time problems like L.A issues, Ryots objections, court case etc., which cannot be avoided unlike head works which are concentrated works. When large projects like Indira Sagar Polavaram Project are taken up, it is not possible to take up all the components of the projects in such a way that are all completed on the same day in whatever way one
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plans as the problem which were encountered during execution cannot anticipated. Further, while taking up such large projects, the works shall be taken up such that the funds requirement such as with Budget provision that can be made available. All the project components were taken up almost simultaneously with an intention to complete them simultaneously to reap the early benefits. But on account of certain unexpected problems, there are certain delays in execution of some components and every effort shall be made to complete the projects at the earliest by sorting out the problems. 5.2.11 Compromise / Reduction in specifications Polavaram Project: As per clause 2.5 of Section-2, general specifications of Agreement the contractor have to submit the designs duly carrying out investigations and it shall be as per relevant I.S. Codes, since the drawings enclosed in the bid documents are only tentative. Accordingly the contracting agency has carried out the investigations and submitted designs as per the relevant I.S. Codes. The designs submitted by the contracting Agency verified with reference to the I.S. Codes and approved by the Chief Engineer, Central Designs Organization, Hyderabad. Hence question of lowering of specifications does not arise. Regarding cost adjustment as per clause 38 and 39 of G.C.C. the contractor bound to execute all the supplemental works that are found essential, incidental and inevitable during execution of main work at no extra cost to the employer. This being a EPC contract system the contracting agency has to carry out the investigation, soil exploration works etc., based on this prepare and submit the drawings for approval. Hence, variations in the quantities
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excess/less may take place. Therefore one can not see only one side of the coin i.e. decrease in quantities. The other side of the coin is some items such as shotcreting, construction of portals, temporary and permanent supports etc are increased beyond the provisions made in the estimate. The resultant savings on account of lowering of specifications of any item of work in deviation from the basic parameters will be assessed by referring to the State Level Standing Committee constituted by the Government and approval of the Government will be obtained. Such savings as approved by Government will accrue to the Government. Hence the observations of audit that the lowering of specification without cost adjustment resulted in undue benefit of Rs 45.53 Crores to the construction agency is not correct and hence denied. When supplemental works are being executed without any cost to the employer on single source responsibility, the other work in which there is some saving in it have to be considered as cost adjustment is not correct. 5.2.12 Land acquisition Polavaram Project: Total land required for working areas of ISP Project was almost acquired.. The total land under submission of the ISP project in three Districts 1) KHAMMAM, 2) WEST GODAVARI & 3) out of it 45150.35 Acres of EASTGODAVARI IS 88366.84 Acres
land which is more than 50% total land required has been acquired. Therefore, there is no shortfall in acquiring the land required. The balance Land acquisition will be done as per programme of the project .The total estimated cost towards Land acquisition is Rs 3405.98 Crores only but not Rs. 8724.81 Crores
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as reported. Out of it Rs 441.941 Crores were spent, on Forest Land only 43216.49 Acres of Non Forest Land is yet to be acquired. The Forest Land affected due to submergence of ISP project is 8961.04 Acres and the process of handing forest land is in progress. Total Land required for land to land Compensation under R& R is 40,330.54Acres out of it 2,800.93Acres has been acquired and balance land 37,529.61 Acres will be acquired as per Scheduled programme. 5.2.13 Rehabilitation and resettlement Polavaram Project: R & R for Project Affected Families is under progress as per construction programme of ISP Project. The draft action plan for all the 29 habitations in West Godavari district, 43 habitations in East Godavari District has been submitted and approved. In respect of Khammam District, the draft action plan for about 60 villages has been prepared and for remaining villages, it is under preparation. All the villages in Khammam District are categorized under phase 3 and 4 R&R in these villages will be completed One year before actual submersion takes place. West Godavari District:- Out of 478.12 acres of land required for house sites, 280.29 acres of land has already been acquired and the remaining extent has to be acquired for the villages which are categorized under phase 2 and 3 and which are not urgent. Out of 3582.50 Acres of land required for land to land, 1208.37 acres of land was already acquired and the remaining extent is falling in the villages which are categorized under phase 2 and 3 only. Total No. of Housing Units to be constructed is 4139 Nos. out of which
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352 Housing Units were completed and 1259 Units are under Progress. Out of total PAFs of Rehabilitated. The infrastructure works for all the 7 villages falling in 1st phase have been completed already and the remaining villages fall under 2nd and 3rd phase. The Socio Economic survey for all the prioritized 1st phase villages has already been completed. Rs.106.560 Crores has been spent so far on R&R in West Godavari District East Godavari District:- The infrastructure facilities for the 1st phase villages has been completed and the same for remaining villages which are in 2nd, 3rd phases is under progress. The land for 4 prioritized villages has already been acquired. The Below Poverty Line housing units to a tune of 498 nos in 1st phase have been completed and remaining units which are categorized under phase 2 and 3 are under various stages. Total No. of Housing Units to be constructed is 4409 Nos. out of which 498 Housing Units are completed and 119 Units are under Progress. Out of total PAFs of 4643, 481 PAFs were rehabilitated. Rs. 25.763 Crores has been spent so far on R&R. Khammam District:- All the villages are categorized under phases 3 and 4 which are affected under submersion only. The R&R in this district will be completed 1 year before actual inundation takes place. Total No. of Housing Units to be constructed is 33708 Nos. As the process of Land Acquisition is still under progress these housing units were not yet completed. Total PAFs are 33708. Rs. 6.178 Crores 4363., 490 were
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has been spent so far in Khammam District. Therefore the R&R implementation is as per programmed action plan. The draft plan for most of the villages pertaining to ISPP was prepared. Every effort is being made to complete the R&R for all the affected villages as per action plan. In respect of Chattisgarh and Orissa, there will not be any submersion of lands and villages due to proposed construction of protective embankments in the territories of Orissa and Chattisgarh, The submergence issue of ISPP in Chattisgarh and Odisha was settled long back in terms of Interstate agreement Dt 2-4-1980 and GWDT award. The contention of audit that the submergence issue with Chattisgarh and Odisha were not sorted out and led to prolonged litigation is not at all correct. The observation of audit that there have been consistent lethargy towards R&R is not at all correct. As implementation of R&R involves coordination and carrying out works from different departments duly consulting affected people. recommended as The R&R work will be completed as per the this particular village Gandikota was a action plan. The implementation of R&R for Gandikota has been rehabilitation village which is again affecting under PLIS sub lifts. 5.2.14 Coordination with Statutory organizations: Polavaram Project: In respect of ISLMC, as per clause 27 @ page No.110 of the agreement, the E.P.C. agency has to follow up with the Department construction. for obtaining clearance and take-up the
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However as per the policy decision taken by the NHAI, the grant of permission for way leave facility (Canal crossings) will be accorded by NHAI provided the Government of Andhra Pradesh foot the bill for the entire scope of work involved and to be carried out as deposit work. After protracted correspondence and obtaining information from NHAI, Government vide G.O.Rt.No.103, dated 13.02.2012 accorded permission for payment of Planning and estimate charges and amount has been paid to NHAI in 03/2012. Permission is awaited. Planning and estimate charges have been paid to NHAI in 03/2012. Permission is awaited. RMC The laying of new pipe lines of HPCL/ GAIL at the point of crossing of RMC is the most suitable option, among the various studies made, as suggested by HPCL / GAIL authorities. Further it is submitted that as per agreement condition 27 of Special conditions of contract, it is the responsibility of the contractor to obtain clearance for HPCL oil pipe lines and GAIL gas pipe lines from the concerned authorities and cost of the crossing of pipe lines are included in the bid. As per agreement condition 24 of other special conditions (Appendix OS), if the canal system is crossing HPCL oil pipe lines, GAIL pipe lines or any other pipe lines the contractor shall provide suitable crossing in consultation with the authorities concerned after obtaining the approval either by In respect of ISRMC Package II
1) HPCL & GAIL Crossing in between Km 19.200 and km 19.750 of
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himself or getting them executed by the concerned authorities as a deposit work duly depositing the requisite amount to HPCL/ GAIL authorities. The Engineer-in-Charge will help in processing the proposals to the authorities concerned to obtain their permission. The cost of such crossings shall be deemed to be included in the contract price. In view of the above facts it is submitted that the department have taken necessary action from time to time to obtain the permission from GAIL & HPCL authorities. Several times the Prl.Secretary to the Govt., (Projects), I&CAD dept, Hyderabad and the Engineer-in- Chief, ISPP, Dowlaiswaram reviewed the status of permission. Because of technical difficulties only, as per site conditions, new pipe lines are inevitable and because of the efforts made by the department with proper coordination with GAIL& HPCL authorities present status of permission could be obtained. The agency is requested to deposit the amount and as soon as the amount paid by the agency work will be completed .There is no financial burden on the Govt., since the cost of crossings has to be paid by the agency within the contract price. 2) Electrical lines in RMC Package-II As per agreement conditions electrical lines coming in the alignment of canal shall be shifted by the EPC agency at their own cost within the contract price. charges to APEPDCL. From KM 35.000 to Km 37.000 of RMC, 33 KV and 11 KV lines are existing in the canal alignment. The Department pursued
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At many places the EPC agency
shifted the electrical lines at their own cost duly paying requisite
the matter with APEPDCL. The APEPDCL authorities informed to pay an amount of Rs.20.47 lakhs towards shifting of 11 KV and 33 KV lines. The agency was requested to deposit the amount. The department have taken necessary action from time to time for shifting of electrical lines. Now action is being taken by the Department to shift the electrical lines in between Km 35.000 to 37.000 within the contract price only.
ISRMC Package No.IV :GAIL pipe line is crossing ISRMC at Km 103.700. After pursuing the matter with the GAIL authorities, an amount of Rs.1.05 lakhs was deposited to the GAIL authorities for preparation of estimate. At the time of preparing detailed estimate, certain field information was sought for by the GAIL authorities. While gathering the required information at field, ryoths of Pedavegi (V) were objected the survey works and not allowed into the fields duly arguing that the area is covered under stay orders of the Honble High Court, Hyderabad in W.P.No.27352/2007. Hence, it is not possible to furnish the required information to the GAIL authorities. 5.2.15 Unforeseen ground conditions uncertainties involved in bidding: Polavaram Project: Polavaram Project canals works are still under progress. Only 50 to 60% works are completed and the lining works under these excavated canals are under progress. The original alignment of these canals is going through Black
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Cotton soils in some reaches.
In these reaches CNS
(Cohesive Non Swelling) treatment below the lining course was provided in IBM estimates to reduce the effect of swelling and shrinkage of the soils. After entrusting the works to the EPC contractors and after detailed survey by the agency, it was decided to take the alignment in cutting only rather than partial cutting or embankment and the revised system. alignment was approved in place of original alignment proposed in IBM estimates to safeguard the canal Because of these reasons there were some As changes in the alignments of canals proposed earlier.
the alignment of canals were changed, the length of the canal, quantity of earth work excavation and structures on the canal in each package work are increased heavily. It is well known that the above changes caused heavy expenditure and the contractors represented Government for additional payments and these proposals were rejected by the Government. In as much as 52% of the lining works are completed the reaches where CNS treatment is required is not fully identified. As the above fact is very clear, it is not rational to say that the amount provided in IBM estimate towards CNS treatment is fully paid to the contractor. In respect of Packages 63 & 64, the tunnels were provided with concrete lining thickness for 900 mm in the estimate as per approved drawings by the CE/CDO/Hyderabad based on detailed soil exploration/ bore hole data. Lining thickness of 900 mm was provided due to lack of data on investigations is not correct. Now as per detailed design calculation based
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on IS Codes and rock strata available in the field, concrete lining thickness of 800 mm was finalized and approved by the CE/CDO, Hyderabad. The agency proposals to provide concrete lining thickness of 500 mm is insufficient, hence not accepted. However, the savings due to reduction of lining thickness in Package 63&64 have been worked out and recovery proposals to this effect have been submitted to the Government. correct. In respect of ISRMC Package-3, the work Earth Work Excavation, formation of embankment and construction of CM & CD works including investigation, designing and estimation of ISRMC from Km 38.199 to Km 71.500 was awarded on EPC basis to M/s. Hindustan Construction Company Ltd., Mumbai vide Agreement No. 11 SE /2004-2005 Dt:23-10-2004 for an agreed value of Rs.321.30 crores at 3% excess over ECV of Rs.311.94 Crores. The work was scheduled to be completed within 24 months i.e 22.10.2006. EOT was sanctioned up to 30.062012. The Right main canal is carrying huge discharge of 391 Cumecs the alignment running in full cutting in higher contour is considered instead of those having embankment reaches to avoid formation of breaches and R4 alignment is approved . Infact the ryots have filed a W.P.in the Hon`ble High court vide W.P.No.452/06 which was dismissed on 07/4/2006 uphelding the decision of the CE, CDO for approving the R4 alignment. The only alignment approved by the dept, was R4 alignment keeping in view to minimize embankment and to avoid risk of breaching. As
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Hence the contention of audit is not
per EPC norms agency has to execute the work as per approved alignment only. Hence the agencys claim for Rs.58.49 Crores is not untenable and hence rejected. The contention of audit all these issues have cropped up only because of lack of detailed survey and investigation and unforeseen soil condition is not correct. Under EPC contract all the items of works from investigation, designs, execution and completion of works 5.2.16 Approval of designs: including O&M falls under single source responsibility of the EPC Polavaram Project: contractor. Status on approval of Designs as on 31.05.2012.
: : : : 717 558 414 15
Total No.of structures No.of Designs submitted by the Agency No.of Designs approved No.of Designs under scrutiny at O/o CE/CDO & CE/ISPP No.of Designs returned at different stages of scrutiny i.e, from O/o ENC/ISPP and O/o CE/CDO with major remarks and for want of further field data etc., and still pending with Agency for re submission No.of Designs yet to be submitted by the agency
129
159
From the above status report it is clear that out of 303 Designs yet to be approved, only 15 Designs are under scrutiny with Department i.e., at O/o ENC/ISPP and O/o CE/CDO, and the rest i.e., 288 Designs are pending with Agency, of which 129 Designs
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are pending for resubmission after attending the remarks and supplementing further data called for, and 159 Designs are pending for first submission itself till to date.
5.2.17 Third Party Supervisions: Polavaram Project: The TPQC package 17 consists of Head works 62 to 67 packages. The QMP for package 62, 63 & 64 are with the department and the same will be transmitted to the TPQC Agency. For the remaining Packages the department is constantly pursuing with the Agencies. As soon as received from the Agencies it will be transmitted to the TPQC Agency for review. At present no works are in progress in Package No.5, 6 & 7 of ISRMC which comes under the purview of Package No.20 of 3rd Party Quality Control. The works are held up for want of land due to delay in land acquisition due to Ryoths objections and the stay orders of Honble High Court. In spite of constant persuasion through Advocate General of Andhra Pradesh, the matter in the court is still pending. The civil works in Packages 5 & 6 are stopped since 06/2009 and continuing as on date except two months in
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Package No.5, where as the works of Package No.7 are continued up to March 2010. Even though the works are idle in Package No.5&6, the agency carried out the Q.C/Q.A operations in Package No.7 where the works are continued up to March. At the same time, the agency carried out non destructive tests in the completed reaches in Package No.5 & 6 in the idle period. As Package No.7 is one of the component of Package No.20, an amount of Rs.1.17 Crs was paid to the agency towards supervision charges at Rs.12,98,573 per month for 9 Months i.e, from July 2009 to March 2010. Beyond March 2010, the services of agency are continued expecting the land is being handed over and the court cases are cleared. However, the payments were paid by the concerned Quality Control Authorities. The Government have accorded permission vide
G.O.Ms.No.29 dt:04.06.2011 to continue the services of the 3 rd Party Quality Control agency with selection staff duly paying the remuneration of Rs.1.57 Lakhs Month to M/s Engineering Staff College of India, Hyderabad for Package No.20 of ISRMC till the package works are resumed. Accordingly the supervision charges are being paid to the agency from 01.07.2010 onwards for selection staff only. 5.2.18 Stoppage of works midway: Polavaram Project: There is a provision of Rs.10.00 Crores towards Survey, preparation of L.P. Schedules, Investigation and designs etc., After concluding the Agreement the contracting agency has attended to the Investigation alignment proposals & L.A.
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proposals including submission of L.P. schedules and designs of proposals Gap I, II & III Based on the proposals submitted by the Agency (1) Land Acquisition was taken up & completed (2) Alignment proposals were finalized (3) Based on the data furnished by the agency the Central Water Commission has issued working drawings (estimate purpose) for the Earth-CumRock Fill Dam for Gap I&II. Based on the work done by the agency an amount of Rs.4.11 Crores paid to the agency against Rs.10.00 Crores claimed by the agency. However in the balance estimate a provision of Rs.5.00 Crores was made available towards balance Investigation & Designs etc, to the second agency. Hence there will not be any extra payment to the second agency. 5.2.19 Unwarranted owning of contracting agencies burden: Polavaram Project: The audit has observed that one of the objectives of EPC turnkey system of contracting was to eliminate the need for revision of project cost. It also observed that the department owned the burden of the contracting agencies in several aspects and listed two packages (Package-67 & 62) of ISPP out of 12 cases reported. The above observation of the audit are not correct. The objective of the EPC system of contracting is not to have cost over run pertaining to the works coming with in the scope of the contract. Any works which are not contingent and fall out side of the scope of the contract are to be treated as extra item and payment is to be made to this extra item as per clause 39.3.1 of
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GCC of agreement. The audit is calling out the extra items which fall out side the scope of the contract as the burden of contracting agencies and pointing out that the department is owing such burden of contracting agencies is not correct. The details of additional item which fall out side the scope of contract in respect of 62 & 67 of ISPP are furnished below. Package: 62: As stated in performance Audit report i.e., the action of Government was unwarranted and resulted in unavoidable burden to the Government and undue benefit to the contractor is not correct. Essentiality of providing depletion sluices to saddle dam E & F was finalized only after Design experts decision during field visit to Polavaram Project in December-2007. It is a unforeseen item and out side the scope of original contract. As per agreement conditions 39.3.1 whenever additional item not contingent to main work and out side the scope of original contract are to be entrusted to the original contractor, on entrustment of such items and price to be paid shall be referred to a committee constituted by Government for final decision. Accordingly, the depletion sluices item was referred to state level standing Committee for decision. After elaborate discussions only, additional item was recommended to the Government, by the State Level Standing Committee. Hence as per agreement condition 39.3.1 it is genuine to consider as an additional item. The observation of audit that even such additional item which fall out side the scope of the contract clearly as burden of agencies is not at all correct and amounts to violation of agreement condition. Package: 67: The construction of flood gate was not included
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in the original scope of work, basic parameters and also in the agreement. Only after detailed investigation, the necessity of the flood gate structure was identified and recommended to the State Level Standing Committee to take up the work as an additional item of work not contingent to original work under clause 39.3.1 of the GCC of contract. As per the state level standing structure. committee recommendations, the Government accepted and accorded permission to construct the flood gate The financial aspect is still under examination. Hence the contention of the audit that this item of work is burden of agency is baseless incorrect and denied.
5.2.20 Payment Schedules Preparation and Revisions: Polavaram Project: The observation of the audit that in Indira Sagar Polavaram Project, the payment schedules are improperly fixed and the revision was not based on the detailed estimates is not correct. The details are furnished below: The work ISRMC Package No.VI i.e., Earth work excavation, formation embankment and construction of CM&CD works including investigation, designing and estimation of ISRMC from KM133.800 to KM 156.500 was entrusted to M/S Progressive constructions ltd, Hyderabad vide Agreement No.8SE/2004-2005 dated 20-10-2004 on EPC turnkey system. Out of total length 24.078KMs, the land handed over to
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the agency is 11.593KMs.The Agency has tackled the entire length in the land handed over portion and completed almost all the earth work excavation and lining irrespective of quantities to be executed. Further, the Agency has executed 8Nos.structures which includes under tunnels, super passages, sluices, DL road bridges. The DLB cum Regulator and Super passage are in progress. PACKAGE No.VII: The work of earth work excavation, formation of embankment and construction of CM&CD works including investigation, designing and estimation of ISRMC from KM156.500 to KM 174.000 was awarded to M/S L&T Ltd, Chennai under EPC turnkey system vide Agreement No.13SE/2004-05 Dt.25-10-2004. Out of total length 18.830KMs, the land handed over to the agency is 15.83KMs.The Agency has tackled the entire length in the land handed over portion and completed almost all the earth work excavation and lining irrespective of quantities to be executed. Further, the Agency has executed15Nos.structures which includes under tunnels, super passages, sluices, SLR bridges. One Regulator cum SLRB is in progress. Hence the contention of the audit that the contracting agencies were able to get more payment by executing easier reaches and small structures ahead of complex reaches and structures is not correct. In respect of Package I of ISRMC, the estimate was
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sanctioned
by
the
Engineer-in-Chief
Vide
ref.
No.2/2004-05, Dt.7-10-2004 for Rs.248.44 Crores. The work was awarded to M/s Patel-Soma J.V, Mumbai Vide Agt. No. 9 SE/04-05, Dt.21-10-2004 for Rs.241.50 Crores. Out of the total length of 14.80 kms.(from km.0.000 to km14.800 of ISRMC), 12.80 Kms length of Earth work excavation and 11.725 kms length of CC lining and 22Nos of CM & CD structures were almost completed out of 25 Nos and 3 Nos (2 OTs and 1 Surplus escape) yet to be started and the balance 2.00 kms work was held up due to Forest Area and R&R problem. The detailed estimates submitted by the agency as per the approval Hydraulic particulars, the payment schedule works out to 41.80% for Earth Work Excavation, 31.50% for CC Lining, and 26.70% for CM & CD Works against the percentages made in the payment schedules in original agreement. The Physical percentage of work done, so far is 87.85% EWE, 78.30% CC Lining, 84.60% CM & CD Works. The Land required for the work has been handed over to the agency in stages as and when the land acquisition authorities hand over the land to the irrigation department. The agency commenced the Earth work, CC lining, Construction of CM & CD Works simultaneously in the reaches where the land is available. So, the contention of the audit that the items like Earth work Excavation was taken up as front items and the construction of CM & CD works as backend items is not correct. Hence the contention of the audit that huge front loading for the items taken up in the beginning is not
248
correct about 90% of work is already completed. Even though the original payment schedule was fixed erroneously, the contractor executed all the three components simultaneously and there by there is no front loading payments made to the contractor. There is no excess amount made to the agency. Further, the payment schedule is being revised for the balance work to be done by the agency as per the actual quantities. The work "Earth Work Excavation, formation of embankment and construction of CM & CD works including investigation, designing and estimation of ISRMC from Km 38.199 to Km 71.500 " was awarded on EPC Turnkey basis to M/s. Hindustan Construction Company Ltd., Mumbai. vide Agreement No. 11 SE / 2004-2005 Dt.: 23-10-2004 for an agreed value of Rs. 321.30 crore.. As per the agreement conditions 41.2.1 of cost control in the agreement the total work specified under EPC turn Key contract is divided into several components of work to facilitate payments component wise. The work of the each of the components are specified as percentage of the total bid price under Annexure-II, Schedule of payments. to the contractor. In EPC contract system there is no change in total amount to be paid The payment schedule was fixed based on After conducting the approximate quantities in the IBM. earth work quantities only.
249
detailed investigation the agency has submitted details for
Originally the canal Earth Work Quantities was arrived based on tentatively alignment in which canal is running in balance depth of cutting. The present alignment approved by Department duly keeping the FSL almost below ground level. Due to this the Earth work Excavation in cutting has been increased abnormally due to deep cuts in alignment. Further due to reduction in length of canal (2.589Kms.) the quantity of lining work is decreased. Hence the main components such as Earth work, lining have been changed and the firm has submitted the revised payment schedule. As per the approved HPs the earth work quantity is increased to from 1.14 Crores cum. To 2.40 Crores cum. revision of payment schedule is necessitated. Hence the Hence the
Government have approved the revised payment schedule to regulate the payment as per the agreement clause 41.2.1 Vol.I, Part-A, conditions of contract. Even the alignment is running in higher contour (deep cut portions) the lining quantity is not increased as the perimeter of lining proposed is constant throughout reach. The logic of the audit that the lining quantity shall increase if earthwork quantity increases is not correct as the length of canal is decreased and depth of cutting is only increased. The payment schedule contemplated in Agreement and revised payment schedule submitted by the agency and revised payment schedule approved by the Govt. is as follows.
Sl No Description Earth work excavation Lining CM&CD works Total
250
Percentage as per agreement Amount as per agreement (Rs Crores) Restriction to agreement value Percentage as per revised payment schedule as approved by Govt.
20.91
41.61
37.48
100
67.18 97.39 (30.31)
133.69 101.20 (31.50)
120.43 122.71 (38.19)
321.30 321.30 (100%)
30.31
31.50
38.19
100%
The payment schedules are revised considering the quantities of earth work, Lining and structures and approved by the Govt memo no.6818/Maj.Irrgn.1(2)/2006.. Hence the contention of the audit that the corresponding lining work is not increased is not correct as the values of the components Earth work and Structures are infact increases as per actuals and restricted to the agreement value . as shown in the above table. The lining amount as per the agreement of Rs 131.587Crores has been decreased to Rs 101.20Crores due to decrease in length. But due to proportionate restriction to agreement value, the percentage lining component is reduced from 41.61% to 38.19%.There is nothing absurd in the calculations. Thus the contention of the audit that the revision of payment schedule resulted in advance/ premature payment on front end items of Rs 30.21Cr is not correct. The work "Earth Work Excavation, formation of
embankment and construction of CM & CD works including investigation, designing and estimation of ISRMC from Km 71.500
251
to Km 105.100" was awarded on EPC basis to M/s. JayaprakashGayati JV, Hyderabad vide Agreement No. 10 SE / 2004-2005 Dt.: 23-10-2004 for an agreed value of Rs. 301.30 crore at a tender discount of 5.71% of ECV of Rs. 319.53 Crore. The work was scheduled to be completed within 24 months i.e 22.10.2006. EOT was sanctioned up to 30.06.2012. Due to change in the alignment of canal from balance depth of cutting to FSL cutting & deep cutting, the length of the canal is increased from 33.600 Kms to 36.065 Kms. Due to increase in length of canal, and running the canal in full cutting there is increase in Earth work, lining and CM&CD Works. The revised payment schedule is as follows considering detailed quantities for Earth work , Lining. The cost of CM and CD works, is arrived based on the cost as per sanctioned estimate.
Sl No 1
Description
Earth work excavation
Lining
CM&CD works
Total
Percentage as per agreement
17.079
36.99
45.931
100
Amount as per agreement(Rs Lakhs)
5145.90
11145.09
13839.01 30130
252
Amount as per Revised payment schedule of approved alignment for 36.065km in lakhs with estimate rates 10677 11183 14100 35960
Proportionate restriction to agreement value
8946
9370
11814
30130
Percentage as per revised payment schedule
29.69%
31.10%
39.21%
100%
The payment schedules are revised considering the quantities of earth work, Lining and structures and approved by the Government in Govt.Memo No.6818/Maj.Irrig.I (2)/2006-1 dt 22-3-2006. Hence the contention of the audit
that the corresponding lining work is not increased is not correct as the values of the components are infact increased as per actuals and restricted to the agreement value on prorata basis, as shown in the above table. The lining amount as per the agreement of Rs 11145.09 lakhs has been increased to Rs 11183.00 lakhs due to increase in length. But due to proportionate restriction to agreement value, the percentage lining component is reduced from 36.99% to 31.10%.There is nothing absurd in the calculations. Thus the contention of the audit that the revision of payment schedule resulted in advance/ premature payment on front end items of Rs 38.00 Cr is not correct. In respect of package 66 of ISPP, initially the agency has started the work to a small extent in the non forest area where the land was made available to work since the major part of the work was involved in the Forest area. The IBM values were arrived as per the
253
preliminary investigation only. The total earth work quantity provided in the IBM estimate as 1,88,598 Cum (i.e, soil quantity as1,05,533 Cum and Hard Rock quantity as 83,065 cum) During actual execution, the total quantity arrived at 3,06,425 Cum (i.e, soil quantity as 7765 cum and Hard Rock as 2,98,660 Cum) based on the approved H.Ps and detailed estimate prepared and thus the value of the component is also increased. The payment of Rs.3.33 crores was made as per the payment schedule provided in the original agreement. Out of which an amount of Rs.3.06 crores was made towards earth work excavation and the remaining of Rs.0.27 crores was made towards investigation work. Considering the actual quantities of work involved, there was no excess or front load payment made to the contractor. Considering the actual quantities as per designs, the Revised payment schedule was prepared and the same was approved by the competent authority. The forest land was also handed over to the agency recently and the execution of Tunnel work is in progress. Now the payment is being allowed as per the approved revised payment schedule only. Therefore the contention in the audit report that the contractor benefited is not correct.
In
Indira
Sagar
Polavaram
Project,
the
payment
schedules of all the packages will be revised duly including the O&M component and the payments will be regulated. The agreements were concluded for package 63 & 64
254
vide Agreement No.64/2004-05, Dt.09.03.2005 and Agreement No.65/2004-05, D5.11.03.2005. Accordingly works were grounded. as per the payment Due to As it is the first time for schedule stoppage appended of works in by the the grounding of works on EPC System the bills were made agreement.
Government from dated 04.05.2006 to 11.05.2007 and for want of forest clearance till 10/2010 the payments which were made based on the payment schedule in the agreement of Package 63 & 64 could not be regularized. However, soon after resumption of the works Payment Schedule was by 1/2011(package63) &12/2010(package64) the Revised prepared and got approved based on the approved drawings and payments were regularized in the running account bills of the package 63 and Package 64 by 7/2011. The payments would have regularized, if the work had been under progress. Because stoppage of works by the Government and nonreceipt forest clearance from the MoEF the regularization of payment have delayed. Hence interest forgone by the Department and unduly benefited the contracting agency for a period of 5 years was Rs.7.45 crores is not correct. The procedure adopted by the audit in assessing Rs.32.93 Crores as premature excess payment is not rational and incorrect. entitlement of the When actual quantities as per contractor for payment, it is execution are to be considered in finding out the obligatory to consider the relevant revised payment
255
schedule based on actual quantities of execution to ascertain the correctness of payments made. The audit while considering the actual quantities of execution taken it for granted the payment schedule in the agreement as granted and assessed the premature excess payment as Rs. 32.93 Crores in correctly. Also structures quantity was considered as 150000 cum as against the probable quantities of 98000 cum. Further, in the IBM estimate provisions for earthwork, lining, and CM& CD works are 52.14%, 21.36%, and 26.50% respectively. As per schedule II of agreement percentage of earthwork, lining and CM& CD works are 33.51%, 44.49% and 22%. The percentages components approved are much lower than the IBM provisions and payments were made at lesser percentages than the eligible percentage (as per IBM). As the payments for earthwork were being made at lower percentages and it was considered to revise the payment schedule after finalisation of actual quantities based on detail designs and estimates. As per the detailed estimate quantities the % components of earth work, lining and structures Even from the actual quantities view, are worked out as 55.55%, 25.79% and 18.66% respectively. percentage component approved in respect of the earthwork and
lining are advantageous to the department. Had the payments were

256
made
with
reference
to
quantities, more component would have been paid in respect of earthwork and in case of lining premature excess payment does not arise since lining is to be done after the earthwork is completed and lining was completed to the extent of earthwork completed. However, it is submitted that required component schedule was approved as per hydraulic particulars but at present the matter is Sub judice. implement quantities. the revised Necessary action will be taken to payment schedule with detail
257
5.2.21 Payments for price variations Polavaram Project: Inrespect of ISLMC package 2, as per Clause 37.2:37.3 and 38.1 of E.P.C, the work awarded on a lump sum contract on EPC Turnkey basis, the contractor will be paid a firm contract price for completion of all works as specified under the scope of the work. CNS soil treatment is one of the operations involved in the finished item of work of lining, it can not be treated separately for inclusion or deletion of the work. However, the percentage of fuel factor was worked out as per IBM is 12.003% and percentage of fuel factor worked out as per actual quantities of value of work is 12.554% (copy enclosed). The percentage of fuel factor considered for payment is in accordance with the IBM is less than the actual percentage of fuel factor to be paid to the contractor. Hence, the remarks of the performance audit stating that an amount of Rs. 68.10 Lakhs excess paid to the contractor is not correct Inrespect of ISRMC package 2, the fuel component in the work was worked out based on the state level standing committee recommendation and IBM estimate quantities. The percentage of fuel component as per IBM estimate worked out to 12.20% For assessing the fuel component, if the actual execution quantities were considered i.e., quantities as per appro ved H.Ps
258
the percentage of fuel component works out to 14.12 %, which is higher than approved value of 12.20%. In order to assess the fuel component, either IBM estimate (as being done in all other works across the State) or revised estimate with actual quantities shall be considered. If the provision of gravel backing was not to be considered as it was not executed, then the increased quantities of earth work, concrete and other items as per approved drawings and as per actual execution should be considered. As the % component with reference to IBM estimate amount was much less than the actual % of fuel component as per the executed quantities, the % fuel factor based on IBM was considered, which is beneficial to the government. contention of the Audit is not correct. In respect of ISLMC package 7, the fuel component in the work was worked out based on the state level standing committee recommendation and IBM estimate quantities. The percentage of fuel component as per IBM estimate worked out to 9.13% for EWE and lining. For assessing the fuel component, if the actual execution quantities were considered i.e., quantities as per approved H.Ps the percentage of fuel component works out to 11.63% %, which is higher than approved value without considering the gravel backing. In order to assess the fuel component, either IBM estimate (as being done in all other works across the State) or revised estimate with actual quantities shall be considered. If the provision of gravel backing was not to be considered as it was
259
As such the
not executed, then the increased quantities of earth work, concrete and other items as per approved drawings and as per actual execution should be considered. As the % component with reference to IBM estimate amount was much less than the actual % of fuel component as per the executed quantities, the % fuel factor based on IBM was considered, which is beneficial to the government. not correct. Inrespect of ISLMC package 3, the lead adopted respectively. respectively. As such, it is proposed to revise the fuel factor duly adopting approved leads and necessary recovery will be effected from the further Running Account bills of the E.P.C. Agency. In respect of ISLMC Package-3, the percentage of fuel factor 24 used for Earth Work Excavation is F&F with 950mts., lead is adopted as per actual lead in site. Subsequently the fuel factor is revised as 12.18 as per sanctioned estimate by considering all classifications of soils for entire reach with leads as per sanctioned estimate and the same has been approved. Hence excess payment of Rs.43,80,510.51 has been adjusted in price escalation bill No.7. Hence there is no intention of excess payment to the contractor. However, while arising the for sand factor As such the contention of the Audit that Rs.1.73 lakh excess payment made is
and metal in sanctioned estimate is 16 KM and 18 KM fuel erroneously leads of 32 KM and 38 KM are adopted
260
5.3 Nettempadu Lift Irrigation Scheme Reply to 5.3.1 (Jawahar Nettempadu Lift Irrigation Scheme) Project Formulation and Basic Information No Comments 5.3.2 Assessment of availability of dependable water resources The JNLIS is contemplated to draw surplus water a tune of 21.40 TMC from the foreshore of PJP in Krishna basin during flood period. The observation of audit that, the surplus water is available 30 days is not correct. As per the statastics and records of CWC, the availability of water is for more than 90 days period from July to October (day wise discharge particulars from PJP reservoir from July 1st to October 31st for the last 11 years enclosed) is much more than required water considering last 11 years the surplus water from PJP dam is worked out to 780 TMC. The JNLIS scheme proposes to lift 0.23 TMC of water per day and hence the water required per day was only 0.23 TMC and this can be lifted for a period of 90 days without any doubt.
261
5.3.3 Preparation of Detailed Project Report In the earlier DPR of 2004, which was not approved,the provision was made to lift the water to 97.40 M for which 4 Nos. of 12 MW each and 2 Nos. of 25 MW (48+50= 98 MW.) pumps were proposed. In the detailed project report submitted to the Government after obtaining the information from the APGENCO, the power required for running of the pumps with 3000 C/s capacity modified to 17 MW for each pump for Lift-I and Lift-II which involving height of 44.42 M + 57.94M is 102.36 M consisting of 4 +3 pumps i.e., each pump requires 17 MW Govt. have also accorded for the same in G.O. Ms.No. 108, I & CAD (MIW) Department, dated 22.6.2005. After conducting detailed investigation through the Agencies, it has been proposed to increase the capacity of the GDBR and RBR to 5.19 TMC from 3.35 TMC duly reducing the proposed Reservoirs without reducing the over all capacity. The same have been approved by the Government. Regarding Reservoirs, feeder channels been linking called the for off and line the tenders have
same will be taken soon after finalization of tenders. Being EPC turn key system introduced by the Government of Andhra Pradesh in which the scope of project will be given to contracting agency and the agency has to conduct detailed investigation for finalizing all the components of projects involved. So question of dependability agencies does not arise.
262
5.3.4 Identification of targeted ayacut The contemplated ayacut of 2 lakhs acres is created in 148 villages. The alignment of main canal are passing through 26 villages and the distributory net work will cover the adjacent enroute The villages. E.P.C. Agencies have taken up the scientific
identification of Ayacut village wise and the total ayacut comes to 198000 acres. The shortfall of 2000 acres has also been As such, the contemplated covered under over all ayacut.
ayacut o 200000 acres is achievable. Therefore, the contention of audit that, the project works were awarded without exercing due diligence is incorrect. 5.3.5 Benefit Cost Ratio While preparing the DPR, BC ratio is worked out on the existing norms as on the date, which is worked out to 1.65. The detailed calculations are appended in the DPR. The contents of incorporated in the DPR are correct and same approved by the Government and the works are under progress. Even as per the calculations made by Audit, the BC ratio is nearing 1 and as the entire Mahaboobnagar district in which the project situated is a drought prone area, the para may be re considered. 5.3.6 Project Approval. 1 Feasibility study is covered in the DPR which is approved by the Government.
263
2.The project envisaged to utilize the surplus water during flood season. 3. No Tribals are involved and hence MOTA clearance was not necessary. 4. This project was taken up under Jalayagnam programme. As the scheme is situated in drought prone are of Mahabubnagar Dist and which is most back ward area of Andhra Pradesh. The Scheme is taken under state funds. 5.3.7 Power supply arrangements To lift the required quantum of water, the high efficiency pumps are designed and erected in Stage-I and Stage-II as per suggestions of APTRANSCO. The Technical guidance and supervision of work is being done by the AP TRANSCO and APGENCO. The risk in the event of failure of any pump is minimum. As the erection of standby pump requires huge financial resources and also the pumps which are proposed to be erected as of now are of technically high quality pumps, the chances of failure of the pump are very less. Keeping in view the additional financial resources required for making standby pumps and also the minimum risk of failure of pumps, standby pumps are not proposed in this project. 5.3.8 Tendering without Technical Sanctions As the state Government have taken up more No. of E.P.C. projects under Jalayagnam to speed up process and also to avoid administrative delays, based on the tentative values. packages Necessary have been ratification orders tenders have been called for However, the tender for 14 by be the Government. from the will obtained
approved
Government.
264
265
5.3.9 Changing IBM values after opening of bids /Incorrect bid Evaluations After having the detailed discussions at higher level, the Government have decided the rate at Rs.11500/- per acre in distributary net work is appropriate. As per instructions of the Government , the same has been provided in the IBM value as per Memo No. 23605/Maj.Irr.IV.1/05-3,dt.27.7.2005. Accordingly, the IBM estimates are sanctioned during 10/2005. A detailed report was submitted to the Evaluation Committee for their recommendations and to submit the same to the Government for according approval. After receipt of approval from the Government, Agreements were concluded with the agencies. Hence, the contention of audit is not correct. As per the special conditions of the bid, the bidders are at liberty to reduced their bid amounts. Hence the bid amounts as reduced by the bidders are accepted and the bids were compared and the works were entrusted to the lowest bidders. In order to avoid time delays by calling fresh tenders and to avoid revised estimates with revised SSRs, though the IBM values were revised after calling of bids these IBM values were considered for bid evaluation and agreements were concluded. In this regard, the IBM values loaded in the tender documents are not open to the contractors till the price bids were opened and hence reduction of bid values by the bidders to suit their bid amounts less than 5% was not correct. There is no extra financial burden in reducing the bid amounts in fact it is a saving to the Government, the bidders are allowed to reduce
266
the bid amounts. In respect of packages when the bid amount is less than 25% of ECV, additional security deposit was collected by the department in the form of bank guarantee. 5.3.10 Entrustment of Works It is to inform that, while submitting online bidding, the bidders have to furnish their bio-data in the prescribed format in online. While making those entries, the bidder has mentioned the name as M/s APR Constructions Ltd., as if they generally pronounced their firms. However, the bid documents are submitted under the letter head containing the name of M/s A. Prabhakar Reddy & Co., which is same as mentioned in the GO of empanelled agencies and hence the bids are accepted and considered for evaluation. As the online format for submission of Bio-data is not restricted by creating drop down menu, the bidders are erroneously mentioning the names some times and the same name is appearing in the price bid evaluation page. However, the matter will be reported to Government and suitable instructions to the bidders will be issued to the intended bidders to enter the correct names as they spelt in the G.O. The financial bids for stage-I and Stage II were opened on 7.4.2005 and the Financial bid fo 12 packages has been opened on 6.4.2005 by the Superintending Engineer himself, since the user name senklisi-c2. It is further inform that, generally in the eprocurement process, on the instructions of the Superintending Engineer, the supporting staff will open the
267
bids for evaluation and the finalization of evaluation will be done by Superintending Engineer only.
The
draft
report
of
performance
audit
in
stating
deviation without mentioning what guidelines have been violated is not correct. Further, it is informed that, the office procedure is team work and each officers is responsible to maintain the office decorum regarding to confidential matters. The tenders can be opened by the sub-ordinate officers as per instructions of Superintending Engineer. There is no deviation. 5.3.11 Status of the Project: At present all the packages are in progress. In respect of package 98, the additional work of HR and CR has already been entrusted to the same agency and the work is in progress. Package.99: Agency has not returned for execution of balance work. The part of the work (LMC) has been entrusted to some other agency and the work is in progress. Due to abnormal delay in resumption of work by the original agency, the proposals for entrustment balance work has been submitted to the higher authorities. Package 100: The agency of package 99 has started their work a little late. The package 100 agency started their work before ensuring the starting point by way of joint meeting with package 99 agency. This was lighten up when Package 100 agency submitted their investigation details and the department stated that the starting point was not correct and
268
conducted joint meeting with both the package agencies and fixed the starting point. The lapse of 1 year does not effect the project cost as the agencies has to execute the work with in the agreement costs and it is binding on the agency. Package-101, 108&109: The department has since been called for the tenders under e-procurement, and the same will be awarded shortly for execution. Designs of 3658 Nos: Out of total No.of designs is 3658 Nos, the agency has submitted 817 Nos. of designs and department has approved 726 Nos Nos. of designs and balance 2932 Nos. of designs are to be submitted by the agency (Statement enclosed) 5.3.12 Issues relating to synchronization of activities As per agreement conditions of Lift I and Lift-II, the first pump has to be commissioned within 24 months for creating partial irrigation benefits. Accordingly, the working period for canals has been made for 24 months. 5.3.13 Compromise/Reduction in specifications As per the agreements conditions the necessary records are being maintained by the Agencies. instructed for maintaining the same. The said photographs were taken while the works were in progress. The agencies has to attend lot of unfinished work, so as at this stage of work the comment is not proper, because the agency has to do balance work as per specification. However, if any defects are noticed during the course of
269
If any registers / records
are not maintained, the concerned agencies have since been
execution, the concerned agencies are instructed accordingly to rectify the works as per conditions of contract and as per technical specifications.
270
5.3.14 Land acquisition Out of total requirement of 23969.91 acres, the agencies have submitted a requisition of 23105.15 acres leaving a balance of 864.76 acres. The revenue authorities have acquired total land of 20163.80 acre which is more than 85% and balance is at various stages of acquisition. The Revenue Authorities are acquiring the land by consent awards, as such, much period for acquisition of land not required as per the assurance of revenue authorities. Hence, six months period for acquisition of land was discussed in pre-bid meeting held with the agencies. As and when the sub division records in respect of handing over site to the agencies is completed by the SDC, the agency has to take up the work simultenously without lapsing of time, such that, the process of Land Acquisition and execution of work will be proceed together. The question of impractibility does not arise, as the process of Land Acquisition is modified as consent award. 5.3.15 Rehabilitation and resettlement Latest Status report on R & R is enclosed.
271
5.3.16 Coordination with Statutory organizations: The required amount payable to the South Central Railway authorities have since been deposited and the bridges are in tender stage. The progress of the work was not hampered just because of the delay in finalization of designs/works by SCR. The agencies can do work leaving the places where the SCR has to undertake the works. Hence time and cost over runs will not attribute only for this delays. 5.3.17 Incorrect clarifications to bidders The Revenue Authorities are acquiring the land by consent awards, as such, much period for acquisition of land not required as per the assurance of revenue authorities. Hence, six months period for acquisition of land was discussed in prebid meeting held with the agencies. As and when the sub division records in respect of handing over site to the agencies is completed by the SDC, the agency has to take up the work simultenously without lapsing of time, such that, the process of Land Acquisition and execution of work will be proceed together. The question of impractability does not arise, as the process of Land Acquisition is modified as consent award. 5.3.18 Issues controlled by employer like Land
Acquisition and Rehabilitation, approval of designs and alignment etc As per the original length of the packages entrusted to various agencies, there is no dispute between the respective
272
reaches. The agreement of package No.99 and Package No.100 were concluded in 25.10.2005 and 24.10.2005 respectively with stipulation to complete the works within the 2 years period. Accordingly, the works of package No.99 and package No.100 are grounded for creating an ayacut of 56000 acres and the works of both packages executed simultaneously. Due to stoppage of work by agency in Package No.99, the progress could not be achieved in RMC(Ist reach) and other package No.100 the agency executing the works as per agreement. As per agreement condition, the agency has submitted the HPs for alignment and this may approved after thourgh verification. There is no decrepancy in approving the starting and ending points of the alignment. Hence, there is no un-fruitful expenditure of 17.594 crores in execution of Package-100. 5.3.19 Third Party Supervisions All the observations made in the report have since been attended by the Agency of the P-105. Only after rectification of defects by the agency, the TPQC will issue clearance certificate for the payment of work bills. Hence all these defects are rectified by the agency and there are no pending bills in respect of Package 105. 5.3.20 Subletting It is informed that the E.P.C. Agency M/s Patel Engineering Ltd is executing the Lift-I and Lift-II have also engaged machinery and the vehicles on hire basis from the others for early completion of the entrusted packages, but not Subleted the
273
work. The contention of audit para is not correct.
274
5.3.21 Unwarranted owning of contracting agencies burden Due to change of basic parameter and the scope of work as per agreement, Govt. have accorded permission to the proposal for additional work with an estimate value of 3.427 crores in G.O.Rt.No. 779, I & CAD (PW.VIII) Dept., Dt. 16.11.2010 (Copy of G.O. enclosed). Since, the item of work is beyond scope of work, the natural responsibility lie with the department in order to achieve the the targeted ayacut. The contention of the audit pary is not correct. 5.3.22 Payment Schedules Preparation and Revisions The contractors approached the Honble High court against withholding towards O&M charges and the Honble High court ordered not to withhold any charges for O&M and the same was covered as the department already withholding 5% as with held amounts from the running account bills for future liability. (Copies enclosed) 5.3.23 Payments for price variations Payments towards price variation for copper and aluminum have been arranged to the Agency as per agreement condition s after verifying of relevant document evidence submitted by the agency. Hence, there is no deviation towards escalation Regarding payment of payment for Copper and Aluminium.
cement and steel towards escalation charges, the department have adopted the rates approved by the Board of Chief Engineers from time to time. However, as per RBI indices, the cement and steel rates will be worked out and adopted in
275
future bill. The contention of excess payment is not correct.
5.4 Handri Neeva Sujala Sravanthi 5.4.1 Profile and project formulation It has been indicated in the report. The project being a major one involving a number of districts and a large length of system has been taken up in two phases. The latest expenditure on HNSS phase I is Rs. 2678.09 cr and HNSS phase II is Rs 3207.53 cr.
5.4.2 Planning Apart from 30 days of flood flow during which water is drawn, water will be drawn during the remaining period of 90 days from the carry over storage of water available at Srisailam Reservoir. With the present design, 40 TMC of water can be drawn in 120 days.
276
5.4.3 Preparation of Detailed Project Report CWC clearance is not mandatory as this project is taken up with flood water. Moreover, CWC does not consider projects, which are based on flood waters. Entire Rayalaseema area in which the project caters is chronically drought affected. The Malyala approach channel is designed to draw water at the level of +250.000 M. when the water level falls below +250.000 M, for supplying drinking water during summer, the second channel at Siddeswaram has been planned. This channel can draw at +240.000 M level of Srisailam Dam. The project was planned during the year 1994 and the estimate at that time was Rs. 1478 Crores. Due to the lapse of time and adding number of other works, the project cost increased to Rs.7360.00 Crores.
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5.4.4 Benefit Cost Ratio The benefit cost ratio with the latest rates is worked out to 1.25. 5.4.5 Project Approvals Investment clearance from planning commission has not been obtained because the project is being taken up with the State Govt. funds. Techno economic clearance from CWC has not been obtained because the project is taken up with flood water. Forest clearance is under process. 5.4.6 Power supply arrangements to lift irrigation schemes Originally in the DPR, 9 lifts on main canal and 19 lifts on branch canals were proposed. Based on the approved alignment and hydraulic
particulars of main canals and branch canals, additional lifts numbering 68 were proposed. Because of the increase in the number of lifts, the project cost and also power requirement has gone up. But considering that the project is designed to provide irrigation and drinking water facilities to drought prone areas, the increased cost is justified. All the pumps installed here run on latest technology. The pumps are manufactured with latest technology & the chance of failure of any pump is remote. More over, if there is any failure of any pump, the maintenance staff of
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the agency will rectify the defects in real peak time.
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5.4.7 Tendering While evaluating, the bid capacity of the bidders was evaluated as per the approved formula, i.e. (2AN-B) 5.4.8 Status of the Project The reasons for delay in completion of the projects are mainly
1. The local ryots objecting for canal excavation and hence disturbing the progress of work. 2. In certain Packages exgratia to C category lands has to be solved by Revenue authorities.
3. In certain Packages villagers are demanding construction of additional structure such as SLB for going to their fields.
4. For Packages such as Mutchumarri approach channel work, link channel work, Package PS 0 and KCC Lift the villagers are demanding for implementation of control blasting and this is to be finalized by the Government. Already proposals are submitted in this regard. They are also insisting for crop, land and houses damage compensation. The Phase-I works are awarded in 2004-05, duly keeping the completion time as 2 years, and after 2 years only the Phase-II works are called for . 5.4.9 Synchronization of activities The Electro mechanical parts are having rare specification, and they are not readily available in the market.
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Also the EM&HM parts are not tailor made supplies. we have to procure them from different agencies as number of items to be procured is more than 100 components for each pumping station. It is also not correct to say that civil works are at intial stage. In the case of Phase I works, almost 90% of the work has been completed. Even in case of Phase II, approximately 50% of the works have been completed. 5.4.10 Compromise/Reduction in specifications Extent of Ayacut proposed in each Mandal, village wise and pipe wise was furnished along with HP,s of distributory system in the Ayacut registers of respective Packages (Viz Package 24, 25,26) under Phase-I .(Copy enclosed) In phase II works, the Ayacutdar registers will be obtained along with HP,s of the distributory system before executing the distributory system 5.4.11 Time over runs The reasons for delay in completion of the projects are mainly 1. The local Ryoths at some places are objecting for canal excavation and hence disturbing the progress of work. 2. In certain Packages exgratia to C category lands has to
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be solved by Revenue authorities. 3. In certain Packages villagers are demanding construction of additional structure such as SLB for going to their fields. 4. for Packages such as Mutchumarri approach channel work, link channel work, Package PS 0 and KCC Lift the villagers are demanding for implementation of control blasting and this is to be finalized by the Government. Already proposals are submitted in this regard. They are also insisting for crop, land and houses damage compensation.
HNSS project has a number of Railway & NH crossings: It is fact that taking permission from Various Agencies like Railways, National High ways etc., takes time and goes beyond the anticipated timeframe. However, special efforts were made at State Level also have frequent coordination meetings etc., with there authorities and ENC, Irrigation was made nodal authority apart from meetings at the level of Principal Secretary. As a result in Phase I, all the 5 Railway crossings and 2 NH crossing works have already been completed. Even in Phase II also by now in most of the 7 Railway Crossings the initial issues have been sorted out & work started. Similarly in case of 11 NH crossings in Phase II, 2 have been completed. 5.4.11. 1 Land acquisition The Land acquisition involves enormous unexpected problems particularly in SEZ, assigned lands including C Category and urban ceiling lands. The extent of land to be acquired is spread over 4 Districts and hence the coordination became challenging
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and difficulty was also
experienced due to shortage of surveyors in Revenue Department
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5.4.11.2 Coordination with Statutory organizations

Originally, while preparing estimate, only double lane bridge was considered. Later on, at the time of execution, the double lane bridge was converted to 6 lane bridge as per the request of the NHAI. As the 6 lane bridge was not in the scope of work given to the agency, only Rs.0.43 Cr which is the cost of the double lane bridge as provided in IBM was reduced from the agreement cost. The actual cost of 6 lane bridge Rs.6.57 Cr was paid to NHAI. This was done as per policy adopted by Govt. to entrust widening of bridges, Railway crossing etc. to the concerned department.
5.4.12 Third Party Supervisions

By the time it was proposed to black list TPQC agency, works were already awarded in Phase-II to the TPQC agencies. Action is being taken to terminate the work entrusted to TPQC agency i.e M/s LASA-VAS. It is incorrect to say that defects pointed out by the TPQC agency are not being rectified. No payments are released without attending to the defects pointed out by TPQC.
5.4.13 Stoppage of works midway It was planned to supply water for the Khariff crops during 2011-12. As the contractors are delaying the work and as there is urgency to complete the work, the part of the work which was essential to release water in main canal was deleted from the agreement of the original agency. The deleted work was entrusted to new agency by calling
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fresh tenders and this action was approved by the Govt.
5.4.14 Unwarranted owning of contracting agencies burden No decision has been taken by the Govt. to pay an additional amount Rs.23.63 Cr to the agency. The issue is still under examination. In the original IBM, only siphon crossing was proposed on the main canal where it crosses KC canal. For construction of syphon, it is required to cut open KC canal, which will affect the ayacut under KC canal. In order to release water continuously in KC canal without interruption, the structure was later changed to an acqueduct. As the location of the pump house was also changed, an additional structure i.e.under tunnel became necessary. As the scope of work got changed, additional payments had to be made to the agency. 5.5 Galeru Nagari Sujala Sravanthi 5.5.1 Profile and project formulation It has been indicated in the report. The project being a major one involving a number of districts and a large length of system has been taken up in two phases. The latest expenditure on GNSS phase I is Rs 3610.23 cr and GNSS phase II is Rs 306.69 cr. 5.5.2 Planning The Schematic diagram in the report has been furnished by
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the department. It gives in detail the arrangements for GNSS Phase I which has also been taken up by the government as a priority project. 5.5.3 Source of water In order to draw water during heavy floods and not to waste flood water, the discharge capacity of the flood flow canal was increased from 10000 Cusecs to 20000 cusecs. Simultaneously the discharge capacity of Pottireddy Padu head regulator has been increased. 5.5.4 Reduction in allocation of water for irrigation In order to draw water during heavy floods and not to waste flood water the discharge capacity of the flood flow canal has been increased from 10000 to 20000 cusecs. After commencement of GNSS works 14.3 TMC of water is allocated to Chitravati balancing reservoir & Pulivendula branch canal and 2.39 TMC water was allocated to private industries. By adopting Micro irrigation water requirement for 2.60 Lakh acres has been reduced from 26 TMC to 17.33 TMC. The saving of water was allocated for cultivation of additional area under CBR & Pulivandula branch canal. Allocation was made to the private industries as part of Govt. policy of allocation of 10% storage in reservoirs to private industries to promote industrialization of the State. The computation of evaporation losses depends upon design of the canal system and soil conditions etc. Therefore
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evaporation, transmission losses may vary.
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5.5.5 Reduction in ayacut: The ayacut originally contemplated in 2004 was 3.25 Lakh Acres. Subsequently an ayacut of 90,000 Acres in Nellore & Chittoor Districts was covered under Somasila Swarnamukhi Link Canal in the year 2006 and deleted from GNSS. An additional ayacut of 25,000 Acres was identified in Kadapa district, thus making the total ayacut under GNSS as 2.60 Lakhs. Previous allocation for 3.25 Lakh acres of ayacut was 28.00 TMC inclusive of evaporation losses, considering 12,000 acres per TMC. Later the water allocation has been reduced to 17.33 TMC considering 15000 acres per TMC for 2.60 Lakh acres.
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5.5.6
Preparation of Detailed Project Report
The scheme is based on flood water. Therefore it is not mandatory to obtain CWC clearance. 5.5.7 Benefit Cost Ratio: B.C. Ratio worked out by the Audit is nearer to 1.00, which is acceptable in drought prone areas. 5.5.8Project Approvals The project is based on flood waters and has been taken up with State Government funds. Obtaining clearances from planning commission and CWC is not mandatory. The R&R programme is taken up by Govt. of A.P. and obtaining forest clearances is under process.
5.5.9 Tendering The agency quoted in the example is Maytas-NCC (JV) which was entrusted with four works. Out of the four works, Package no. 26 is completed upto 57%. Package 30 upto 72%, package 1 upto 91% and CBR Right canal upto 80% completed. Therefore the delay in completion of the packages is not due to entrustment of multiple works to the same agency but due to many other reasons.
5.5.10 Status of the Project Present status of the packages is as follows. GNSS Phase-I Package no. 1 R&R centers are getting ready and the
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villages will be evacuated very soon. Package no. 2 Nil Package no. 47 The agency has resumed the work and
the work is under brisk progress. Package no. 48(A): The agency has resumed the work and the work is under brisk progress. Package no. 49(A): Payments have been made. The work is nearing completion. Package no. 24 : The issue was referred to Lokayukta by the villagers of yerraguduru. Lokayukta examined the issue and ordered to pay Rs. 12.9 lakhs to affected people.The amount is deposited with RDO, Kurnool and the issue is being pursued for disbursement of the amount. Package no. 25 : The agency has not resumed the work in spite of several reminders. Package no. 26: No Change Package no. 27: An extent of 17.87 Acre of land acquistion is pending apart from forest land. The work is under progress. Stage-II Proposals were sent to G.O.I. Package no. 28: No Change Package no. 29: No Change Package no. 30: There is no LA problem. At present the contractor resumed the work from 4/2012 and proceeding with work
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Package progress.
no.
31:
Design
accepts
are
clarified.
The
contractor has resumed the work and the work is under
Gandikota Lift Irrigation Scheme: The objections of Kondapuram villagers are solved and the work is under progress. Almost 90.14 % of work is completed. GNSS Phase-II Package no. 1 to 7: Obtaining Forest clearance is under active process. Work is under progress where ever there is no problem about land acquisition and forest clearance. Package No 12/06: Due to objection from the land loosers for formation of Reservoirs the work was stopped and the matter was reported to the Government. The Government have given instructions to go ahead with the formation of reservoirs. The EPC Agency has been informed to resume the balance work and complete the same within the period of E.O.T granted. Package No 14/06: Work on Package 14 was suspended from March 2011 by the EPC Agency stating various reasons such as non payment of bills ,land acquisition,shifting of HT lines,R&R etc. Meanwhile Agrement period was over and E.O.T has been granted for one year. The Agency is being persued to resume the work and complete the balance work. The audit mentioned that GNSS Package No.I was completed to an extent of 94% and unless the works in head reaches are completed, the completed asset remains idle.
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The contention of audit is wrong. There is every chance of receipts of inflows into Gandikota Dam from Self Catchment of Pennar during monsoon period which can be utilized for irrigation. As per previous record considerable inflows are seen in Penna river. At the time of awarding the works in head reaches it was programmed to complete the works with in stipulated time to derive contemplated benefits of the scheme. But the delays in obtaining forest clearances and acquisition the required land affected the scheduled progress of works. However there is every chance of receipts of inflow into Gandikota Dam from Self Catchment of Pennar during monsoon period which can be utilized for irrigation and drinking water. As per previous record considerable inflows are seen in Penna river. Even during recent years some water was stored and utilized. At the time of awarding the head reaches works, it was programmed to complete the works within stipulated schedule time to derive benefits of the scheme. But the delays in obtaining the forest clearances and acquiring required land affected the progress. Howe ever, most of the land acquisition has been completed by now. Even in care of forest clearance in most of the head reaches Stage-I clearance has been relieved from MoEF, Government of India and matter is being pursued for final clearance from MoEF, GOI. 5.5.11 Compromise / Reduction in specifications Packages 6/06 and 7/06 : In EPC contract, when a
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canal work is awarded, the co-ordinates of the starting and ending points of the canal, basic parameters for discharging capacities, supply level and command area to be covered etc., are ensured. The agency is free to design the alignment of the canal in continuity with basic parameters. As the work is awarded on EPC mode, judging the work based on LS contract system is not appropriate. Package : 24/06 The statement of the audit that the thickness of the pier, the length of the pier is reduced is not correct as the thickness of the pier gets reduced in the hoist portion. Similarly the length of the pier gets reduced in the down stream. This is provided in the drawings which are approved. When the agency submitted the road design, the width of the road was 4.25 mts. However due to dumping the excavated earth during the previous widening of the canal, the agency could not form inspection path with 4.25 mts width and therefore submitted revised proposal with 3.75 mts taking in to account the site conditions. Only lumpsum provision was made in the IBM estimate. The question of benefit of Rs. 0.43 Cr to the contractor does not arise. Package: 28 The point to be checked is whether basic parameters are ensured are not. As there is no change in basic parameters the question of benefit to the agency does not arise. 5. 5.12 Delay in approving changes in designs: Package: 30: The specification of twin tunnel from the
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originally planned one tunnel of 16 m dia was changed based on recommendations of the Geological Survey of India. It is true that the agency made a claim for Rs. 30.00 Cr. for concreting of widening portion of the tunnel. But the Department has not so far accepted the claim. The work is also under progress.
Package: 31 :There are no hydraulic parameters involved in the adit portion of the Gandikota tunnel. As there are not critical parameters there is no problem at the time of maintenance. More over the CE, CDO has confirmed the design submitted by the agency.
5.5.13 Entrustment of additional items of work The widening of the canal and raising gates is contingent to the main work. Therefore it was entrusted to the same agency with original SSR of 2004-05 based on the agreement. The other work i.e., construction of tunnel for railway crossing and formation of approach road is not contemplated at the time of award of the work. As it was a new work outside the scope of the agreement. which the work was actually entrusted. 5.5.14 Unwarranted owning of contracting agencies burden / undue favour Package : 27/06 :The proposal included in the IBM is for Therefore the payment was made as per SSR of 2009-10 the year in
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construction of a double lane bridge costing Rs.1.27 Crores. Later on, as per the request made by NHAI instead of two lane bridge, 4 lane bridge was proposed and the work was entrusted to NHAI. An amount of Rs.9.21 Crores cannot be recovered from the contracting agency. deleted from the agreement value. However the provision made for the two lane bridge in the IBM was
Package : 47 : The deduction for the deleted portion of the work was done as per the approved payment schedule i.e. as per the agreement rates. given to the contractor, When the additional work was the contractor executed the
additional work also with the original SSR 2004-05 though the additional work was awarded to him in 2006-07, thereby there is a saving of Rs.17.30 Crores to the department. Further the tender discount of 25.28% was also applied to the additional work given to the agency. the Government. This tender discount resulted in a further saving of Rs.30.44 Crores to There is an over all benefit of Rs.47.74 Crores to the Government.
Package : 48 : Classification of according to the payment schedules. payments. contractors.
soils is arrived for Hence classification
preparation of payment schedules only. Payments are made based on IBM will not come into the picture while making Hence there is no undue benefit to the
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Package 48 & 49 : No separate provision is made for trimming of slopes. canals. Trimming is part of the excavation of However to ensure that the contractor does The trimming
trimming after completing the work of excavation, the provision was shown towards trimming. portion is released after ensuring that the work is done in all respects. Hence this is only a precautionary provision. The audit observation that the amount provided for trimming is not deducted is not correct.
Package : 1 The work formation of WBM road with black top for 1.15 Kms was a new work being an approach road from state high way SH 31 to the head regulator which is outside the scope of original work. entrusted as additional work. Hence this work was
Package 30: Though there was a marginal increase in the quantities of excavation, the operations involved in tunnel excavation are doubled due to change of single tunnel to twin tunnels. Keeping the total percentage for earth work and lining component unchanged at 98.2% of the total cost, the sub component for excavation is increased from 47.98% to 70.50%. This cannot be treated as front loading and no benefit was made to the contractor Package : 31 The original design was single tunnel with RCC lining for 500 meters length in the faulty zone. Later on,
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twin tunnels were proposed. The RCC lining is deleted and only CC lining is proposed, later changed to SFRS lining. The provision of RCC lining is deleted at the time of change of proposal from single tunnel to twin tunnel, and CC lining is proposed for twin tunnels. Hence the question of deducting cost of RCC lining does not arise. Hence there is no undue benefit to the contractors as pointed out by the audit. Package 48 & 49 : The amount provided for maintenance in IBM is only a small amount. Rs.49000/- is provided for As a package No.48 and Rs.52000/- for package No.49.
precautionary measure, an amount of Rs.78 lakhs and Rs.63 lakhs was provided in payment schedules. This amount is actually not for maintenance. It is taken out from other working items.The actual amount provided for maintenance in the IBM is in fact being deducted when the contract is closed. 5.6. Pranahita Chevella Sujala Sravanthi (Dr. Bheem Rao Ambedkar PCSS) 5.6.1 Project Formulation and Basic Information
The basic information of the project is as follows:
Irrigation potential 16.4 lakh acres in seven districts of Telangana envisaged: Source of water 160 TMC from Pranahita, 20 TMC from Godavari at Yellampally Yellampally Purpose 124 TMC for irrigation, 10 TMC for drinking water in villages enroute, 30 TMC for drinking water in twin cities of Hyderabad and Secunderabad and 16 TMC for industrial purpose Components 7 links and 7 balancing reservoirs apart from utilization of 5 balancing reservoirs of other projects 849 KM Gravity canal and 209 KM tunnel works Administrative Original : Rs. 17875 crore (May 2007) Sanction Revised : Rs. 38500 crore (December 2008)
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Expenditure Lifts Power requirement
Rs. 1850.78 crore (May 2012) Number : 22 Height : 493 3466 MW
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5.6.2 Preparation of Detailed Project Report M/s WAPCOS Ltd. has scored 92.82 (Technical:72.82; Financial:20) whereas 94.33 M/s Aarvee Associates has scored Financial:15.72). From bid (Technical:78.61;
evaluation, both M/s WAPCOS Ltd. as well as M/s Aarvee Associates have vied for each other, both securing more than 90% score. The difference in their scores is hardly 1.50% and thus any of the firms is good enough for delivering the goods. M/s WAPCOS Ltd. has quoted Rs. 2.54 Crores whereas M/s Aarvee Associates has quoted Rs.3.23 Crores. The difference in the cost quoted by both the firms is 69 Lakhs. The committee opined that loosing exchequer by 69.00 Lakhs for a meager increase in score is not prudent and recommended for the lowest quoted firm. This has saved the exchequer by 69.00 Lakhs. Besides, M/s. Water and Power Consultancy Services (India) Limited (WAPCOS) , a public sector enterprise under Ministry of Water Resources, Government of India, has got vast experience in this field. Subsequently, M/s Aarvee Associates offered to do the work for Rs.2.53 Crores. The revised financial bid offered by Aarvee Associates could not be considered as it was a tender evaluation but not open auction. Considering the quotation of any firm after opening and evaluating the tender and after knowing the lowest quoted rate is against the spirit of the tender process itself.
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In view of the above, the para may be dropped. Dr.B.R.Ambedkar Pranahita-Chevella Sujala Sravanthi
project is contemplated to provide water to irrigate 16.40 lakh acres in kharif and 4.95 lakh acres in rabi through water conveyor system duly utilizing the following balancing reservoirs and 7 new reservoirs: 5 online
Online Balancing Reservoirs (Other Projects)

SI.No. 1 2 3 4 5 Name of the Reservoir Sripada Yellampalli Barrage Medaram Tank Mothe Vagu Reservoir Mid-Manair Reservoir Upper-Manair Reservoir Total Storage Capacity (TMC) 20.00 0.58 1.65 25.87 2.10 50.20
Newly Proposed Online Reservoirs

Sl. No 1 2 3 4 5 6 7 Name of the Reservoir Barrage across River Pranahita Ananthagiri Reservoir Imamabad Reservoir Thadkapalli Reservoir Tipparam Reservoir Pamulaparthy Reservoir Chevella Reservoir Total Storage Capacity in TMC 5.00 1.70 1.50 1.50 1.00 1.00 3.00 14.70 Submergence Villages 2 1 1 2 3 9
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The capacity of Sripada Yellampally barrage is 20.00 TMC. The ayacut proposed to be irrigated under this reservoir is 2.20 lakh acres. It is planned to provide the irrigation facilities for this ayacut for only one crop i.e., in kharif season. The SYP barrage scheme is not contemplated to provide irrigation facilities for the rabi crop. At the same time, water is supplied to this barrage from Pranahita river in flood days. Therefore, at the end of kharif season, SYP barrage is filled with water from Pranahita so that water can be stored in this reservoir and the same is utilized for irrigating ayacut under this scheme during Rabi season. Even if a modest 25% of the barrage capacity is utilized for this scheme instead of total capacity of 20.00 TMC, water to an extent of 5.00 TMC is available for irrigating rabi crop for this scheme. Similarly, the capacity of Mid-Manair reservoir is 25.87 TMC. The ayacut proposed to be irrigated under this reservoir is 2, 00,000 acres. It is also planned to provide the irrigation facilities for this ayacut for only one crop i.e., in kharif season. The Mid-Manair reservoir scheme is also not contemplated to provide irrigation facilities during rabi. Therefore, the Mid-Manair reservoir is also filled with water from Pranahita so that water can be stored in this reservoir at the end of kharif season and the same can be utilized for irrigating ayacut under this scheme during Rabi. Even if a modest 25% of the reservoir capacity is utilized for this scheme instead of total capacity of 25.87 TMC, water to an extent of 6.46 TMC is available for irrigating rabi crop for this scheme.
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Thus, a total of about 11.50 TMC of water is available from these two reservoirs alone considering only 25% of their capacity, in addition to the 14.70 TMC of water from the new online reservoirs of this scheme. Hence, the total available water for this project during rabi season is about 26.20 TMC. Thus, the water requirement of 21.3 TMC during rabi can be met easily. Further, it is to clarify that the water for other than irrigation purposes i.e, 10 TMC of drinking water to enroute villages, 30 TMC of drinking water to twin cities of Hyderabad & Secunderabad and water for industrial purposes is lifted during kharif and conveyed through water conveyor system along with the water for irrigation and delivered at required locations. It is the responsibility of the concerned departments to arrange their own systems to carry and store that water. In this connection, the Principal Secretary to Government, I& CAD department was addressed vide this office letter no. CE/DrBRAPCSS/AEE-1/W.A/12/79, dated 31.01.2012 a copy of which is enclosed. The Principal Secretary, vide Govt. U.O. Note NO. 2995/M&MI-TIV(1)/2012, dated 06-02-2012, in turn addressed the
concerned departments to give their comprehensive water utilization plan for the allocation made to them under this project so that this department can plan delivery of such water to nearest possible location a copy of which is enclosed herewith. Hence, the para may be dropped.
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5.6.3 Overlap of ayacut The entire ayacut proposed under this scheme is exclusive of other projects. PCSS & SRSP-II : The ayacut of one village in one Mandal i.e, Atmakur Village in Atmakur Mandal in Nalgonda district is reported to be overlapped in two projects i.e., PCSS and SRSP-II. In this connection, it is to clarify that the contemplated ayacut of 2487 acres under PCSS Package No. 16 comes under Atmakur (M) Village, Atmakur Mandal in Nalgonda district. There is another Atmakur village which comes under Atmakur (S) Mandal in Nalgonda district. The SRSP II ayacut is covered in this Atmakur (S) Mandal. The details of ayacut of two projects are enclosed herewith along with the ayacut map showing that there is no overlap of ayacut of two projects PCSS & SRSP-II in Nalgonda district. PCSS & SYP : It is to clarify that the ayacut as referred by the audit party under 30 villages in four Mandals of Karimnagar district comes under PCSS only. This ayacut was included in the DPR of this project under Link-3 and accordingly the tenders were also invited and agreement concluded in November 2008. The survey & investigations are also completed and the execution is about to start. The map showing the ayacut of PCSS & SYP is enclosed herewith. Hence this para may be dropped.
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5.6.4Benefit Cost Ratio Preparation of DPR was entrusted to M/s. Water and Power Consultancy Services (India) Limited (WAPCOS), a public sector enterprise under Ministry of Water Resources, Government of India who have got vast experience in this field and handled many irrigation projects in various states in the past. The organization consists of eminent engineers who are well-acquainted with all the irrigation concepts, scientific methodologies and practices and who are well-aware of the Central Water Commissions guidelines and norms. The Benefit-Cost Ratio is worked out as per the GUIDELINES FOR PREPARATION OF DETAILED PROJECT REPORT OF IRRIGATION & MULTIPURPOSE PROJECTS. GOVERNMENT OF INDIA, MINISTRY OF WATER RESOURCES. Crop Water requirements and irrigation requirements are mainly based on scientific methodologies presented in FAO Irrigation and Drainage papers No. 24 CROPWAF 5.7 based on revised method for estimating reference crop Evapo-Transpiration. The approach of Penman-Monteith as recommended by the FAO has been used for calculation of ETo and crop water requirement for the selected crops. This is the most practical and comprehensive method for computing crop water requirements. The crop water requirements depends up on various factors such as Type of crop Type of Soil Crop period Rainfall (the average rain fall is about 800-1000mm,
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which is good) Sunshine hours Evapo transpiration
While calculating crop water requirements according to the above method, the coefficient ETo is used. This value of ETo is different for different crops, for different seasons i.e., kharif and rabi in different regions of North Telangana & South Telangana. The calculation of crop water requirement is thus done by using different factors. Further, the crop water requirement is done separately for North Telangana i.e, Adilabad, Karimnagar, Nizamabad, Warangal, Part of Medak and South Telangana region i.e, Part of Medak, Nalgonda & Rangareddy for kharif and rabi periods. The crop water requirement is calculated by considering 85% of cropped area to be irrigated by Surface irrigation and 15% area by drip irrigation in kharif season. Similarly, 40% of cropped area is considered to be irrigated by surface irrigation & 60% cropped area by drip irrigation during Rabi period. Further, the system efficiency is taken as 54% for surface irrigation while it is taken as 80% for drip irrigation. By adopting the above scientific procedure, the following are the crop water requirements for different crops proposed for the two regions of North Telangana & South Telangana during kharif & Rabi periods:
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Crop Water Requirements for North Telangana i.e, Adilabad, Karimnagar, Nizamabad, Warangal, Part of Medak
Sl. No. Crop Name KHARIF Paddy Pigeon Pea Groundnut Cotton Chillies Soyabean Turmeric Vegetables Sub Total RABI Hybrid Maize Hydrid Sorghum Groundnut Chillies Vegetables Corriender Green Gram Black Gram Sub Total Total Requirement At Plant Root (mm) 540.00 59.90 59.80 214.10 196.30 24.30 350.10 102.70 Area Under Crop (ha) 75000 10000 50000 60000 45000 40000 45000 35750 360750 Total Requirement at Plant Root in MCM 405.0 6.0 29.9 128.5 88.3 9.7 157.5 36.7 861.7 Total Requirement at Canal Head in MCM 750.00 10.19 49.61 225.00 154.13 17.27 277.00 64.52 1547.7 Total Requirement at Canal Head in TMC 26.49 0.36 1.75 7.95 5.44 0.61 9.78 2.28 54.66
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
260.4 213.0 350.2 344.0 392.9 241.6 115.4 128.5
6000 6000 4000 10000 8000 4000 34500 37500 110000
15.6 12.8 14.0 34.4 31.4 9.7 39.8 48.2 205.9
28.9 19.2 20.7 51.3 46.4 14.3 58.1 70.7 309.5
1.0 0.7 0.7 1.8 1.6 0.5 2.1 2.5 10.928
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Crop Water Requirements for South Telangana i.e, Part of Medak, Nalgonda & Rangareddy.
S.No.
Crop Name
Total Requir ement At Plant Root (mm) 658.0 83.5 94.7 274.6 246.4 63.2 439.8 159.6
Area Under Crop (ha)
Total Require ment at Plant Root in MCM
Total Require ment at Canal Head in MCM 304.6 11.4 67.3 195.1 190.5 66.4 317.7 122.9 1276.0
Total Requir ement at Canal Head in TMC 10.76 0.40 2.38 6.89 6.73 2.35 11.22 4.34 45.06
KHARIF 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Paddy Pigeon Pea Groundnut Cotton Chillies Soyabean Termeric Vegetables Sub Total 25000 8000 40000 40000 45000 60000 40700 44250 302950 164.5 6.7 37.9 109.8 110.9 37.9 179.0 70.6 717.3
RABI 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Hybrid Maize Hybrid Sorghum Groundnut Chillies Vegetables Corriender Green Gram Black Gram Sub Total 320.3 266.1 423.8 421.0 479.7 303.9 144.2 160.0 4500 10000 6000 5000 2000 2500 31500 28500 90000 14.4 26.6 25.4 21.1 9.6 7.6 45.4 45.6 195.7 26.7 39.7 35.6 31.4 14.9 11.3 68.5 65.2 293.2 0.94 1.40 1.26 1.11 0.53 0.40 2.42 2.30 10.36
The number of acres irrigated by one TMC of water is different for each crop in different seasons and in different regions as shown
308
below:
CWR FOR NORTH TELANGANA (ADILABAD, KARIMNAGAR, NIZAMABAD, WARANGAL, PART OF MEDAK)
S.No. KHARIF 1 2 3 4 5 6 7. 8 RABI 1 2 3 4 5 6 7 8 Hybrid Maize Hydrid Sorghum Groundnut Chillies Vegetables Corriender Green Gram Black Gram 14510 21889 13540 13644 12068 19626 41549 37126 Paddy Pigeon Pea Groundnut Cotton Chillies Soyabean Turmeric Vegetables 6997 68657 70518 18659 20429 162075 11367 38769 Crop Name Acres/TMC
CWR FOR SOUTH TELANGANA (PART OF MEDAK, NALGONDA & RANGAREDDY)

S.No. KHARIF 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Paddy Pigeon Pea Groundnut Cotton Chillies Soyabean Turmeric Vegetables 5742 49252 41588 14342 16528 63209 8963 25201 Crop Name Acres/TMC
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Sub Total RABI 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 Hybrid Maize Hybrid Sorghum Groundnut Chillies Vegetables Corriender Green Gram Black Gram 11797 17639 11789 11149 9405 15445 32179 30592
With the above, it is clear that the number of acres that can be irrigated by one TMC of water is not the same for each crop and also this differs for different seasons and different regions. This is because the total water requirement at plant root is different for different crops as per the Penman Montieth Standard procedure. The Crop Evapo-transpiration and Irrigation Requirements are given in separate standard tables for each crop for kharif & rabi periods. With reference to these Standard tables, the total water requirement at plant root is given in mm/dec. For example, for the paddy crop the total water requirement is 540.0 mm/dec in North Telangana region while it is only 24.3 mm/dec for soyabean crop in North Telangana (standarad tables enclosed). This means that the water required for paddy crop is much more than that required for the soyabean crop. Hence, from the above table it is clear that the area that can be irrigated for paddy crop is 6997 acres/ TMC while for soyabean it is 162075 Acres/TMC. This value of Acres/TMC cannot be averaged for all the proposed crops. Further, it is informed that the same procedure as stated above was adopted for calculating crop water requirements during the preparation of feasibility report. The Central Water Commission, New Delhi has thoroughly scrutinized the feasibility report and accorded In-Principle clearance for the same.
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There is a fundamental flaw in the Performance audit para on benefit-cost ratio. The statement the average ayacut proposed to be irrigated with one TMC of water worked out to 16,446 acres in Kharif and 23,214 acres in Rabi season, which are extremely ambitious projections is incorrect and the term
average ayacut is completely meaningless. In view of the above, it is stated that the benefit cost ratio should be worked out as per the scientific methodology as explained above and not on prorata basis. The figures of 10000 acres per one TMC or 15000 acres per one TMC as mentioned in the audit report is only for rough assessment on pro rata basis. Here actual crop water requirements for each and every crop are calculated as above as envisaged in CWC guidelines. The CWC will not accept crop water requirements on prorate basis. As seen from the above table, the ayacut that can be irrigated ranges from as low as 6997 acres / TMC for paddy in North Telangana to as high as 162075 acres/ TMC for soyabean as explained above. Further, in the above report the audit stated that The cost of the irrigation component of the project, excluding the cost of providing drinking water supplies (30 TMC) to the twin cities of Hyderabad and Secunderabad and industrial purposes (16 TMC) works out to Rs.38,572.04 crore. In this connection, it is to clarify that the cost of the entire project is Rs.40300 Crores as per DPR. This cost includes the provision not only for irrigation water but also for drinking water to twin cities of Hyderabad & Secunderabad, water for industries & drinking water to enroute villages. However, as the benefits taken into account for calculation of B.C ratio are irrigation benefits only, it is prudent to consider the cost incurred for
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providing irrigation water and not the entire cost of the project. The water utilized for drinking water to twin cities of Hyderabad & Secunderabad & water for industries is not taken into account for calculating the benefits. Hence, the cost of project as irrigation project is Rs.30001.11 Crores and not Rs.38, 572.04 Crores. Hence, the B.C. ratio worked out to 1.43 is absolutely as per the guidelines of the Central Water Commission only. Hence, this para may be dropped.
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5.6.5 Project Approvals Status of project approvals : Feasibility Report was submitted to CWC in 04/2009 with diversion of 160 TMC from River Pranahita. CWC has communicated the Water availability at project site as 236.5 TMC on 27-07-2009. In-Principle Clearance is received on 16-04-2010. As per GWDT award, Maharastra and Andhra Pradesh agreed that Joint Committee be formed to investigate the extent of submergence and assess the compensation payable. An Inter State agreement has been signed between the Chief Ministers of the two States of Andhra Pradesh & Maharastra on 05/05/2012 in Shram Shakti Bhavan (Copy enclosed). The signing ceremony has been graced by the presence of Shri Pawan Bansal, Honble Minister for Water Resources, Government of India. The Detailed Project Report is submitted to the Central Water Commission in 10/2010 and is under scrutiny in various directorates and their Remarks are being attended. It requires clearance from 7 Directorates of CWC, three ministries and one Board. Clearances from the following 2 Directorates & 1 board are received Central Soil Material Research Station (CSMRS) Construction Machinery Consultancy (CMC) Central Ground Water Board (CGWB).
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Environmental Clearance Stage - I Expert New Appraisal and Committee approval for Meeting scoping was and held TOR for is "Scoping and Terms of Reference" on Delhi communicated on 08-07-09. Site clearance and approval for Revised TOR is received in 03/2010. Environmental Clearance Stage - II Draft EIA & EMP reports are prepared and furnished to AP State Pollution Board and 7 District Collectors for conducting Public Hearing. Environmental public hearings were conducted during the period from 19-04-2011 to 10-05-2011 in all the 7 districts. Final EIA & EMP reports are under preparation Forest Clearance Proposals for diversion of forest area in 10 forest divisions involved in this project were furnished to the Andhra Pradesh Principal Chief Conservator of Forests in 07/2011. The PCCF has forwarded the proposals for diversion of forest land to the respective Divisional Forest Officers for further necessary action. The department is constantly pursuing the matter with the forest authorities. Obtaining clearances from CWC & Ministries of India will take considerable time Calling of tenders for execution of works in parallel with obtaining clearances could save time & money. R & R Clearances
314
16-06-2009 in
The
MOTA
report
for
&
clearance
is
under
preparation.
315
5.6.6 Clearance from Central Water Commission Status of Clearance from CWC: Feasibility Report was submitted to CWC in 04/2009 with diversion of 160 TMC from River Pranahita. CWC has communicated the Water availability at project site as 236.5 TMC on 27-07-2009. In-Principle Clearance is received on 16-04-2010. As per GWDT award, Maharastra and Andhra Pradesh agreed that Joint Committee be formed to investigate the extent of submergence and assess the compensation payable. An Inter State agreement has been signed between the Chief Ministers of the two States of Andhra Pradesh & Maharastra on 05/05/2012 in Shram Shakti Bhavan (Copy enclosed). The signing ceremony has been graced by the presence of Shri Pawan Bansal, Honble Minister for Water Resources, Government of India. The Detailed Project Report is submitted to the Central Water Commission in 10/2010 and is under scrutiny in various directorates and their Remarks are being attended. It requires clearance from 7 Directorates of CWC, three ministries and one Board. Clearances from the following 2 Directorates & 1 board are received Central Soil Material Research Station (CSMRS) Construction Machinery Consultancy (CMC) Central Ground Water Board (CGWB).
Environmental Clearance Stage - I
316
Expert New
Appraisal and
Committee approval for
Meeting scoping
was and
held TOR
for is
"Scoping and Terms of Reference" on Delhi communicated on 08-07-09.
16-06-2009 in
Site clearance and approval for Revised TOR is received in 03/2010. Environmental Clearance Stage - II Draft EIA & EMP reports are prepared and furnished to AP State Pollution Board and 7 District Collectors for conducting Public Hearing. Environmental public hearings were conducted during the period from 19-04-2011 to 10-05-2011 in all the 7 districts. Final EIA & EMP reports are under preparation Forest Clearance Proposals for diversion of forest area in 10 forest divisions involved in this project were furnished to the Andhra Pradesh 07/2011. The PCCF has forwarded the proposals for diversion of forest land to the respective Divisional Forest Officers for further necessary action. The department is constantly pursuing the matter with the forest authorities. Obtaining clearances from CWC & Ministries of India will take considerable time. Calling of tenders for execution of works in parallel with obtaining clearances could save time & money. R & R Clearances The MOTA report for R
317
Principal
Chief
Conservator
of
Forests
in
&
clearance
is
under
preparation.
318
5.6.7 Adhocism in taking up projects This project is contemplated to provide irrigation facilities to drought prone areas of telangana region of Andhra Pradesh. These areas are deprived for water for centuries. To provide water for these areas, the States of Maharashtra and Andhra Pradesh have agreed to take up this project along with Lendi & Lower Pengana projects at appropriate time with agreed water utilization, as per the Godavari Water Disputes Tribunal (GWDT) report, dated 06th October 1975. The main extract of the proceedings is as follows: The discussions related to the clearance of the Projects on and the use of waters of Godavari River and its tributaries. After full discussions the following points were agreed to : I. Maharashtra can use for their beneficial use all waters up to Paithan dam site on the Godavari and up to Siddheswar dam site on the Purna. II. (i) From the waters in the area of the Godavari basin site on the Godavari and below site on the Purna and below dam
below Paithan dam Siddheswar
Nizamsagar dam site on the Manjira and up to Pochampad dam site on the Godavari, Maharashtra can utilize waters not exceeding 60 TMC for new Projects including any additional use over and above the present sanctioned or cleared utilization, as the case may be.
319
(ii) Andhra Pradesh can go ahead with building its Pochampad Project with F.R.L.+ 1091 and M.W.L. + 1093 and is free to utilize all the balance waters up to Pochampad dam site in any manner it chooses for its beneficial use. Maharashtra will take necessary action to acquire any land or structures that may be submerged under Pochampad Project and Andhra Pradesh agrees to bear the cost of acquisition, the cost of rehabilitation of the displaced families and the cost of construction of some bridges and roads that may become necessary. Maharashtra also agrees to the submergence of the river and streambeds. III. (i) In the Manjira sub-basin above Nizamsagar dam
site, Maharashtra can utilize waters not exceeding 22 T.M.C., for over and new projects including any the additional use above present sanctioned or cleared
utilisation as the case may be (ii) Andhra Pradesh can withdraw 4 T.M.C., for drinking water supply to Hyderabad city from their proposed Singur Project on the Manjira. (iii) Andhra Pradesh can construct Singur Project with a storage capacity of 30 T.M.C., Andhra Pradesh can also use 58 TMC under Nizamsagar Project. IV. Maharashtra concurs with the agreement arrived at between the States of Andhra Pradesh and Karnataka in regard to the use proposed by Karnataka in the Manjira subbasin upstream of Nizamsagar dam site.
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V.
Maharashtra and Andhra Pradesh will be free to
use additional quantity of 300 TMC of water each below Pochampad dam site for new Projects. VI. Maharashtra and Andhra Pradesh agree in principle agreed to by the interested States, viz.,
to the taking up of the Inchampalli Project with F.R.L. as commonly Maharashtra, Andhra Pradesh and Madhya Pradesh. VII. Maharashtra and Andhra Pradesh agree to
take up the following Joint Projects at the appropriate time with agreed utilizations: a). b). c). Lendi Project Lower Penganga Project. Pranahita Project.
and to set up joint committees for this purpose. VIII. agree The States of Maharashtra and Andhra Pradesh that this agreement will be furnished to the
Government of India and also be filed before the Godavari Water Disputes Tribunal at the appropriate time. The Annexure B of the agreement dated 07-08-1978 states as follows: (A) (B) The State of Andhra Pradesh can use the remaining It is also agreed that Pranhita Hydro-electric waters of the Pranhita sub-basin.
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Project is not viable and therefore has to be given up. However, the States of Andhra Pradesh and Maharashtra agree to have barrage/barrages across the Pranhita river at suitable sites so that they may provide irrigation facilities in their areas. The quantum of water that will be used by Maharashtra from these barrages will be reckoned against 41 TMC as specified in clause (V) (2) (B) above. are to The joint Project/Projects for such barrages be taken up after reaching separate
Agreement/Agreements for them, between the States of Maharashtra and Andhra Pradesh, either for the benefit of both the States or one State. During that time, due to absence of sophisticated
technology irrigation facilities for the proposed upland areas could not be provided. The proposed areas under this project are deprived for water for centuries. The people from these areas are committing suicides and migrating in large numbers due to water scarcity. The people of agricultural community are giving up the traditional occupation of agriculture due to undependable and non-permanent irrigation facilities and are opting to take up labour work for daily wages as a livelihood. The Government of Andhra Pradesh has accorded permission for preparation of detailed project report for diverting 160 TMC of water from Pranahita river to Sripada Sagar Project Reservoir and creating additional Ayacut of about 12.20 lakh acres including drinking water and industrial requirement of Hyderabad vide G.O.Rt. No.
322
623, I & CAD Dept., dated 15-07-2005. Accordingly, an Expert Technical Committee was constituted by the Government of Andhra Pradesh vide G.O.Ms No. 193, dated 27-10-2005 to evaluate and finalize the bids and to take up the work of preparation of Detailed Project Report. Government took a decision to ground the scheme under Jalayagnam & entrusted the work to M/s WAPCOS Ltd. New Delhi vide G.O. Ms No. 229, dated 14-12-2005 and created an exclusive Chief Engineer for the scheme vide G.O.Ms 115, I & CAD (Ser.II) dept., dated 06-07-2007. The original scope of project is to create an Ayacut of about 12.20 lakh acres including drinking water to enroute villages & twin cities of Hyderabad & Secunderabad and also industrial water requirement by diverting 160 TMC of water from Pranahita river. Subsequently, the scheme underwent some improvisations as there was an increase in Ayacut as well as some changes were found necessary keeping in view the ground levels and other technical and design suitability. The reasons for revision are as given under: The Honble Chief Minister has made an announcement of providing Irrigation facilities to an extent of about 1.00 lakh acres in Mudhol and Nirmal constituencies of Adilabad district. It was also ordered to delete 67,500 acres of Nalgonda district from GLIS-III and add the same to Pranhita Chevella scheme vide G.O.Ms. No.141, Irrigation & CAD (Maj. Irrgn.IV) Dept., dt.14-07-2008.
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Many
public
representations
were
received
to
provide irrigation facilities to their areas. As a result of considering such valid representations, the scope of the scheme has been changed to create an ayacut of 16.40 lakh acres besides providing drinking water to enroute villages and twin cities of Hyderabad & Secunderabad and water for industrial purposes. Similarly about 1.5 Honble lakh Chief acres in Minister Tanduru, has Parigi made and announcement of providing irrigation facilities to Vikarabad Mandals of Rangareddy district. The upper utilization of 32 TMC from foreshore of SRSP Project for the Ayacut of Adilabad and Nizamabad District is compensated by dropping the same Quantity of water (32 TMC) into Kakatiya Main Canal at Km. 117.30 near Ragampet (V) of Choppadandi (M) of Karimnagar District. It is also proposed to feed an ayacut of 1,24,500 Acres contemplated under SYP Stage-II, Phase-II utilizing water conveyer system of PCLI in Link-II. Hence the carrying capacity of the water conduit from Sripada Sagar to Mid Manair and Mid Manair to Shamirpet has been increased to accommodate 20 TMC of water additionally and distributing the same proportion to the enroute ayacut needs. The Carrying capacity of water conveyer system from Pranahita to Sripada Sagar Project is increased from 462 Cumecs as proposed by WAPCOS to 583 Cumecs considering 90 Days of diversion and 160
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TMC of requirement. Thus the scope of work was finalized with total Ayacut of 1640000 acres. The Government issued suitable orders vide Memo No. 14491/Maj.Irr.VIII(1)/06 dt:16-04-2008 for water distribution out of 160 TMC so as to ensure that the scope of work is accurate and reflects the complete scheme with envisaged goals. The Government has appointed a committee vide Memo No. 14491/Maj.Irr.VIII(1)/06-11 changes in design, while considered dt: 07-05-2008 the to examine details, finalizing components, basic of the
appropriately
parameters duly keeping in mind the interest make suitable recommendation to the Government. The committee consists of: 1) Engineer-in-Chief (Admn.) Convener 3) Chief Engineer, CDO 4) Advisor (CA) 5) Advisor (TSP) 6) Advisor (T) Member Member Member Member -
State, technical feasibility and economical viability and
Chairperson Member &
2) Chief Engineer, Pranahitha-Chevalla
The Committee had a series of meetings on 04-06-2008, 13-06-2008, 30-06-2008, & 22-7-2008 and examined the modalities followed in finalizing revised proposals, ayacut, designs, and preparation of accurate estimates etc. The Committee rendered advise while finalizing the scope of work in various packages in PCLIS. The Detail Project Report (DPR) submitted was verified, the discrepancies were notified
325
to
WAPCOS.
Joint
inspections were carried out wherever necessary and finally WAPCOS submitted Detail Project Report (DPR) with parallel check from Department Engineers resulting in enhanced quality and accuracy. To incorporate the change in scope of work in the DPR and to rectify the discrepancies in the interim report of WAPCOS, detailed field study thereon by Departmental Engineers went parallel, facilitating to create packages and fixing IBMs (Internal Bench Mark) etc. Then WAPCOS furnished revised project report in July 2008 duly incorporating all the deviations pointed out. The cost estimate works out to Rs. 34,865 Crores for an ayacut of 12,20,000 Acres. The proposals for Revised Administrative Approvals were submitted to the Government in August 2008 for Rs. 38,500 Crores as recommended by the Expert Committee and the approval was accorded by the Government vide G.O.Ms. No.238, Irrigation & CAD (Maj. Irr.VIII(1)). Dept., dt.17-12-2008. Tenders were invited for all the 28 package works from 09/2007 to 09/2008. Agreements were concluded for all the packages from 06/2008 to 05/2009. With the modern technology available now, the project is taken up by proposing water conveyor system like canals, tunnels, lift systems, reservoirs & distributory network. Since this project is targeted to provide drinking water and irrigation facilities to the drought prone areas of Telangana region, public representations from the areas deprived for water for centuries, were received to provide irrigation facilities. As a result of considering such valid
326
representations, the scope of the scheme has been changed to create an ayacut of 16.40 lakh acres besides providing drinking water to en route villages and twin cities of Hyderabad & Secunderabad and water for industrial purposes. All the project works are divided into 7 links & 28 Packages. Tenders were invited and Agreements were concluded for all 28 Packages during 2007-08 & 2008-09 with an agreement period of 48 months. Certain problems like delay in acquisition of land, forest land & non-availability of funds etc., arised during the course of execution causing little time delay. All the above obstructions/delays cannot be forecast at the time of planning itself. Due to problems like paucity of funds, forest land involvement and land acquisition, the Government revised the target year of completion of project as 2018-19 vide Memo.No. 7514, dated 30-6-2011. An Inter State agreement has been signed between the Chief Ministers of the two States of Andhra Pradesh & Maharastra on 05/05/2012 in Shram Shakti Bhavan (Copy enclosed). The signing ceremony has been graced by the presence of Shri Pawan Bansal, Honble Minister for Water Resources, Government of India. The main extract of the agreement is as follows: In pursuance of the proceedings of the meeting between the then Chief Ministers of Maharashtra and Andhra Pradesh Shri S. B. Chavan and Shri J. Vengala Rao respectively on 06/10/1975, and the agreement which
327
are part of Further report-1980 of the Godavari Water Disputes Tribunal as Annexure-B, the following Three Irrigation Projects are the joint ventures of the two State Governments :1. Lendi Project 2. Lower Penganga Project 3. Pranhita Project Of the above schemes, interstate issues of Lendi Project and Lower Penganga project have already been sorted out. The remaining Pranhita Project namely Dr. B.R. Ambedkar Pranhita Chevella Sujala Sravanti project (hereinafter referred as PCSS), is being investigated and surveyed for execution. With a view to ensuring efficient, speedy and economical investigation and execution of this project and in pursuance of the relevant clauses under Pranhita Sub-basin pertaining to States of Maharashtra clauses, we and have Andhra consented Pradesh to form and a the joint entitlements of both States as stated under those committee viz. Inter State Board of two States as per Agreement at Annexure-I. 2. Inter State Board shall be overall in-charge of the investigation, survey, preparation of project report and execution of PCSS project and any other issues mutually agreed by both the States with regard to Pranhita River. 3. The Governments of two States shall communicate the ratification of this agreement to each other.
328
As it is aimed to benefit the drought-prone areas by such a gigantic multi-purpose project, the project is taken forward with a positive approach to get the intended benefits. As the intended benefits are enormous, these small obstructions/delays can be ignored. From the above, it is clear that these areas are in need of permanent irrigation facilities since a long time. Therefore, all attempts are made to enhance the irrigation facilities from 12.20 lakh acres to 16.40 lakh acres for the welfare of the people. This cannot be called as Adhocism. In fact, it is because of excellent planning that this project contemplates to provide irrigation facilities to such huge command area. For this reason, this project is popular as the biggest lift irrigation in India. Further, it is evident from the above discussion that lot of exercise has been done since the conception of this project before 1975 till date to take up this project for providing the irrigation facilities to the areas deprived for water. Hence, there is no Adhocism. Hence, the audit para may be dropped.
329
5.6.8 Inter State issues As per the Godavari Water Disputes Tribunal (GWDT) report, dated 06th October 1975, the State of Maharashtra and Andhra Pradesh have agreed to take up 3 projects namely (1) Lendi Project (2) Lower Penganga and (3) Pranahita-Chevella at appropriate time with agreed water utilization. With in this agreement the Lower Penganga and Lendi Projects are already under execution and this Dr.B.R.Ambedkar Pranahita-Chevella Sujala Sravanthi is now being taken up. As per GWDT award, Maharastra and Andhra Pradesh agreed that Joint Committee be formed to investigate the extent of submergence and assess the compensation payable. An Inter State agreement has been signed between the Chief Ministers of the two States of Andhra Pradesh & Maharastra on 05/05/2012 in Shram Shakti Bhavan (Copy enclosed). The signing ceremony has been graced by the presence of Shri Pawan Bansal, Honble Minister for Water Resources, Government of India. Only1852 acre of land is submerged in Maharastra State. These lands are also along the river banks of Wardha & Wainganga only and not in villages of Maharastra. Hence, there is no R & R issue with Maharastra Government and this issue can be sorted out easily without any litigations.
330
The extent of submergence of lands in the Maharastra State due to this project is not as substantial as expressed by the audit party and the above inter state issue can be sorted out shortly as the agreement has been concluded. Hence, the para may be dropped. 5.6.9 Tendering The PCLI scheme consists of 28 packages and all the works are taken up by calling tenders on EPC basis under open category. The total scheme has been divided into 28 reaches based on the site conditions and exhaustive network of canals, tunnels, pump houses, reservoirs and keeping in view of necessity of the project implementation schedules. The total outlay of the scheme is Rs.38500 crores and hence keeping in view of the site conditions, the project works are proposed under 28 packages. The tenders for all these packages have been called for under open category as already explained under EPC system. All the package works consist of High financial outlay The works involves highly specialized and expertise works such as 1. High capacity canals 2. Tunnels of large diameters and length
331
3. Lift system to handle large quantum of water to be lifted to very high heads. 4. Pumps and Motors of very high capacities 5. Associated components 6. Huge civil structures for river crossings for canals. 7. Reservoirs 8. Very high capacity surge systems 9. Latest instrumentation & control systems to run the entire system in tandem. It is to mention that out of the above, tunnels, canals & structures on civil side and the pumps and motors on electro-mechanical side are the critical components and hence, very few agencies have the required capacities and capabilities on civil works side and on the electro mechanical side. The department have asked for the participation of the manufacturers of the motors and pumps. On the pumps and motors side, BHEL from India and few more companies from the foreign countries have become eligible for these tenders. The bidding was limited to very few qualified bidders mainly due to following reasons: All the partners of the consortium have to be jointly and severally responsible for the entire work. At least one partner has to be registered with the GoAP and others must have applied for registration for bidding. 15 years of operation & maintenance of the package works. This kind of condition of 15 years of operation & hydro and electro-mechanical
332
maintenance
has
been
incorporated
in
irrigation
tenders for first time in India. This has been kept keeping in view of requirements of the department and assistance of the EPC agencies for operation & maintenance for longer periods for effective operation & maintenance of spares. This condition have put many companies which are otherwise qualified to be away from the bidding as they are again jointly and severally responsible for the scheme for such a long time. Thus, BHEL and few other foreign companies which wanted a long term association with the works entrusted have taken the issue very seriously and participated in the bidding process through JVs. The civil engineering companies upon their study and evaluation of different works and to limit their participation to the extent of their capabilities and expertise have chosen only some of the packages for bidding after tying up up with motor and pump manufacturers. Further these companies have formed different consortiums with the available companies for motors As the works are large and complicated in nature, the firms who were registered and who are willing to undertake responsibility of O &M for 15 years have formed as JVs / consortiums among themselves to enhance their capabilities and to meet the eligibility conditions. There is no restriction to competition among
333
and
pumps
for
participation
in
different
packages.
these bidders. All the tenders have been evaluated and the bid capacities as per criterion have been checked and all the qualified contractors have satisfied it. In the process various companies have and bidden for various contracting the tenders. Only arrangements
completely eligible bidders and lowest price offered consortium groups are only selected for award of the works. The bid capacity of the JVs and total work load including all the agreements of PCSS put together satisfies the bid capacity criteria as per G.O. 94 as annexed. The audit has assumed that the jointly and severally responsible clause will apply incase of failure of any of the partners to complete the work. Therefore all the partners will complete work to the extent of 100% each and therefore the workload of each JV has been made as many times over as partner in the JV. This is completely farfetched and absurd way of looking at logic and legality of JV bid capacity & rules as per COD) G.O.MS.No .94, IRRIGATION CAD (PW DEPARTMENT,
Dt :- 01-07-2003 and arriving at an imaginary conclusion. Therefore, the observations of the draft audit are based on facts and therefore may be dropped. 5.6.10 Status of the Project All the project works are divided into 7 links & 28 Packages.
334
Field investigation works for main canal and tunnels are completed in most of the packages. Design works are in progress. Execution is in progress in Packages-1, 2, 6, 7, 8, 10, 11, 20, 21 & 27. The Government has appointed Special Collector, L.A., SRSP & PCSS for this project to expedite the process of Land acquisition. The process of land acquisition is in full swing. About 22,889 Acres of land is requisitioned and is in various stages actively progressing and about 1578 Acres of Land is acquired. Environmental public hearings were conducted during the period from 19-04-2011 to 10-05-2011 in all the 7 districts. The Proposals for diversion of forest area in 10 forest divisions involved in this project were furnished to the Andhra Pradesh Principal Chief Conservator of Forests in 07/2011. The work is in progress and arriving at conclusions at this stage would be premature. Hence the para may be dropped 5.6.11Rehabilitation and resettlement The submergence extent along with TRIBAL PROJECT AFFACTED FAMILIES, if any, are to be identified after detailed investigation and the rate of compensation will be decided by the Government. The process of investigation and fixing up of alignment is completed for almost all the packages. The process of
335
identifying PAFs along the alignment of water conveyance system and submergence tribal villages, if any, is in progress. The report concerned with Ministry of Tribal Affairs is to be furnished in totality i.e. submergence due to formation of barrage as well as under water conveyance system & reservoirs etc. The process of R & R is, thus, in progress. Hence, the para may be dropped. 5.6.12 FACTORS TOWARDS SCHEDULE: The PCLI Scheme has been taken up by the Government with an intention to complete it in its totality. The project envisages various components such as canals tunnels, structures, lift systems, Reservoirs, and distributor network with in each package works and also all packages are interlinked as the designs and execution of works were taken up simultaneously. So all the investigation works of all the packages are to be carried out in tandem, the Government have decided to freeze the investigation of the scheme and designs and parameters before taking up the actual execution. Payment LEADING Schedules TO Preparation OF THE and
Revisions REVISION IN PROVISION PAYMENT INVESTIGATION
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In order to complete this task, it is found very difficulty to take up the investigation and designs of all components of packages and the scheme at one time, the provisions made in the original payment schedule have found to be insufficient with out supplementation from the components of execution of these items. In this connection it is to be mention that while approving the IBM for these projects only 0.43% to 0.5% of cost of the components has been provided for investigation. Hence, it is found inevitable to revise the payment
schedules, stage wise for each component of work such as canals, tunnels, structures, lift systems, reservoir and distributory network as each of the above components in turn involve investigation and designs apart from their actual execution. It is to be mention that component weightage is kept unaltered as shown in the original payment schedule appended in Annexure-II. Even as per CWC Guidelines August 2000, vide para 18.6.1, the amounts required against each of the above items will vary from project to project and no general Yard stick can be laid down. However, it has been the experience that the overall position under A Preliminaries (i.e. for investigation and surveys) alone is 1% to 3%. The above provision and of 1% of to 3% is only towards and
investigation
survey
canals,
reservoirs,
distributory system. Further in all public sector enterprises like ONGC, NTPC and
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normally in Central PSUs the provision for investigation and designs is being kept as 5% of the cost of works. Where as in the PCLI scheme the total provision kept in each packages around 0.43% to 0.5% only. All these tenders are similar to the tender invited by theI&CAD Department wherein pumping and piping works are involved to large extent. The ONGC have stipulated, in their payment schedule in the bidding documents itself, that the design Engineering shall have 5% of the quoted value. This is possible only if they have considered In their estimation of the works. The copies of the part of bidding documents of ONGC works are also enclosed for ready reference. The PCLI Scheme involves large scale lifting of water and very huge pumping station, large tunnels which are big in size and length, underground pump houses, surge analysis, piping designs , Geological investigations, mapping, rock analysis etc.. These items involve experts from many fields and many laborites and time also. As the scale of the packages is very large, these packages involve huge pumps and motors which only few international manufactures are doing. As these motors and pumps and other electromechanical items are to be installed in hostile
conditions underground the designs of these parts are crucial and difficult in nature and time consuming. In PCLI Scheme the Agencies apart from the above, have to do, land plan schedules, core drilling and Geo investigations for tunnels, designs and prototype testing of pumps, Sump model studies, inspection of motors, testing and pumps and
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motors in the manufacturing units which are located in foreign countries. Considering all the above the provision for investigation and designs should be around 5% of working items, instead only a provision of maximum 0.5% is only loaded in the IBM. Even the APGENCO is charging 1% of the cost of equipment for only vetting the designs of these equipments. Assuming The value an average provision been of 5% towards
Investigation and Designs is provided for PCLIS would have (5/100x36258=Rs. 1812.90 Cr) Actual total provision for these items in PCLI IBMs = Rs. 172.12 Crores only. Hence there is savings to Government = 1812.90172.12 = Rs. 1640.78 Cr. Considering the work requirements only and payment towards the work done, the payments schedule is changed and the provisions to towards these items has been increased to 2 to 3.5 % basing on the requirements of each package duly reducing the provisions of connected items for facilitating the requirements of survey, investigation, designs, prototype testing and other allied items which are part and parcel of the preliminary works of the scheme and the contracted amounts have not been changed. This is done to impress upon the agencies the importance of these activities and for getting it done elaborately and exhaustively by the agencies at their own cost without loading it in the IBM to
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that extent. Hence the draft audit para many be dropped for inclusion.
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5.7 Srisailam Left Bank Canal Tunnel Scheme(Alimineti Madhava Reddy Project) 5.7.1 Project Formulation and Basic Information
Irrigation potential envisaged Source of water
3 lakh acres in Nalgonda District 30 TMC from river Krishna 43.931 km gravity tunnel to carry 4000 cusecs from Srisailam Reservoir to Dindi Balancing Reservoir.
Components
Formation of Dindi Balancing Reservoir 7.131 km second tunnel to SLBC main canal and open canal for 25 km to feed existing AMRP High Level Canal
Administrative sanction
Rs. 2813 crore (August 2005) Rs. 973.87 crore (March 2012) (apart from Rs. 55 crore towards compensatory afforestration) Requisitioned: 4154.10 acres and Acquired: 826.12 acres 3 thandas 311 familes (as per survey conducted in 2007)
Expenditure
Land Villages affected Number of BPL housing units
5.7.2 Preparation of Detailed Project Report No Comment The Tunnel Scheme is taken up as a permanent solution. The Detailed Project Report for overall AMR SLBC Project (revised
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DPR) is under preparation. The BC ratio of overall project will also be worked out and will be incorporated in the DPR. The recurring cost of the lift scheme i.e. the HTCC charges for lifting 30TMC of water is about Rs 60.00 crore per annum besides O&M charges of pumping station and depreciation on Pumping equipment at 5% cost of Machinery. Since the cost of Tunnel Scheme is Rs 2813 crore, the depreciation of the capital cost is Rs 28.13 crore per annum, as the life of civil works is considered100 years. Moreover, the Pumping equipment life is generally considered as 20 -25 years, out of which the pumps have been working for last 10 years. 5.7.3 Benefit Cost Ratio The Detailed Project Report for overall AMR SLBC Project (revised DPR) is under preparation. The BC ratio of overall project will also be worked out and will be incorporated in the DPR. The recurring cost of the lift scheme i.e. the HTCC charges for lifting 30TMC of water is about Rs 60.00 crore per annum besides O&M charges of pumping station and depreciation on Pumping equipment at 5% cost of Machinery. Since the cost of Tunnel Scheme is Rs 2813 crore, the depreciation of the capital cost is Rs 28.13 crore per annum, as the life of civil works is considered100 years. Moreover, the Pumping equipment life is generally considered as 20 -25 years, out of which the pumps have been working for last 10 years. 5.7.4 Project Approvals
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No Comment 5.7.5 Boosting of Estimates / Inflated internal bench marks The department has initially prepared the estimate for Rs. 2354 crores with the data and parameters obtained from the various sources in the country as the drilling with TBM was being adopted for the first time in the department and the data available with the department. The same was submitted to the Government for approval. After thorough scrutiny, it has been opined at higher level that the provision of overhead charges, which was allowed in NHPC, has to be disallowed. Further, it has been noticed that the lead for muck disposal for Tunnel-2 has been taken as 33 Km instead of 7 km inadvertently. Hence, the same was rectified and sanctioned by the Government. There is no change in the quantity of lining item. Hence, there is no higher lining thickness in the initially prepared estimate. 2,132 crore and compared the The IBM value was arrived at Rs. was
tenders received. The quoted amount has got nothing to do with the IBM value. Hence, it may be construed that the estimates were not prepared in haste. Generally, it is not possible to excavate the tunnel to the exact profile. It is a recommended practice to adopt the payment up to B-Line which is beyond the required profile (A-Line). The same is also mentioned in clause 2.2 of the IS: 4880 (Part II) 1976. Therefore the provision of 5% of total excavation is accounted towards the excavation between A-line and B-line in addition to the excess excavation in faulty zone. Further, the approved thickness of lining is 425mm as against the
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proposal of the
agency for 300mm which leads to further
excavation. It indicates that the IBM was not inflated. The excavation area of horseshoe section of finished diameter of 8.758m is more than the excavation area of circular section of = 80.946 sqm = 81.411 sqm finished diameter of 9.0m as detailed hereunder Excavation Area of Circular Cross section Excavation Area of Horseshoe Cross section
The excavation quantity of horse shoe section is more than Circular Cross section by 3372 cum. Hence, it shows that the IBM value is not inflated. The adits to the main tunnel are generally provided to decrease the leads for materials and length of the ventilation/air duct pipes. It may not be appropriate to compare each individual item as they are likely to vary since the estimate is prepared in the absence of detailed engineering. During the execution, the convenience of the provision of the adit or otherwise has to be explored based upon the detailed engineering. However, the IBM value does not affect the quoted amount of Rs.1925 crores. Hence it is not appropriate to say that there is a reduction in the cost of excavation. In preliminary design, the thickness of lining may be assumed to be 6 cm per meter of finished diameter of tunnel as per the clause 7.2.1 of IS:4880 (Part IV) 1971. Therefore thickness of lining works out to 54cm (6cm x 9M). Hence, a provision of 500mm thick lining is made. The thickness of lining actually approved is 425 mm as against the proposal of 300mm by the agency.
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Hence there is no inflation in the lining item in the estimate.
Generally, it is not possible to excavate the tunnel to the exact profile. It is a recommended practice to adopt the payment up to B-Line which is beyond the required profile (ALine). The same is also mentioned in clause 2.2 of the IS:4880 (Part II) 1976. Hence, the payment should be made for concrete lining up to B-Line. Therefore the provision is made for the equivalent filling of over breakages with concrete. 5.7.6 Tendering No comment 5.7.7 Status of the Works The first 5% mobilization advance is towards infrastructure
development, mobilization of labour and TBM advance. However, the TBMs are to be ordered after detailed investigation and collecting Geological information. Accordingly, the TBMs were ordered. The infrastructure works were in progress during the above period. The delay in assembling second machine is mainly due to clearance from the Forest department. Further, the site for intake was changed due to Geological conditions. Hence, the assembly could be started in June 2009.
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The inundation of the TBM was due to unprecedented floods in river Krishna which has not occurred during the last 100 years. Hence, the delay in commencing the boring was only due to the natural calamities. The average boring rate was assumed as 1.00km per month with two machines. But the geological conditions could not be assessed in depth due to the restrictions of survey work in the Wild Life sanctuary area. Only two TBM machines can work in this project. Further, if any problem arises in the machine, the same has got to be repaired then and there only. The machines neither can be taken back nor can be replaced. Every effort is being made to accelerate the work though the above restrictions exist. The 2nd machine is progressing well with about 400m per month which is likely to touch 500m. The work of Dindi Balancing Reservoir could not be commenced due to LA problem. The estimates for Open canal are under preparation. 5.7.8 Land acquisition In AMRP tunnel Scheme, the requirement for Tunnel is 576.35 acre and acquired is 551.32 acre and balnce is 25.03 acre. In respect of Dindi Balancing Reservoir, land required is 3577.75 acre and acquired is 274.8 acre and balance is 3327.98 acre. 5.7.9 Rehabilitation and resettlement No comment Three thandas are coming under submerge in case of Dindi Balancing Reservoir (DBR). Two thandas of Mannavaripally village
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consists of 240 families (1035nos-population) of Mahabubnagar District and one thanda of Teldevarpally village of Nalgonda District consists of 71 families (population -285nos) are coming under submergence, to whom the R&R is to be provided. Preliminary survey is conducted. Estimates are under preparation for R&R package. There is a provision of Rs.20 crore for R&R in the Tunnel Scheme administrative approval of Rs.2813 crore.
5.7.10 Quality Assurance The contracting agency along with the Department conducted Bench mark survey and the Bench mark values are with the department. The correctness of the same is being verified. The quality assurance and Quality management Plan were received. The test results arrived in the contracting agency laboratory are almost tallying with the results of reputed laboratories which was compared subsequently. The Government, vide Circular Memo No. 34843/Reforms/2006, Dt.7-5-2008, stipulated that If there are revisions in the design due to change in the Basic Parameters, then the modalities for effecting such a change will be decided with the prior approvals of the Government. In view of the above, the proposals were submitted to the Government on 30.11.2010 to accord permission to adopt the MFD of 18625 cumec as estimated by the Chief Engineer, Hydrology for designing spillway. Government have directed to place the proposal before the State Level Standing Committee and furnish their views /
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recommendations to Government for taking further necessary action. The proposals were placed in the State Level Standing Committee meeting held on 16.4.2012 and the Committee has opined that the Spillway be constructed for 8580 cumec as indicated in the Basic Project Parameters and the design of Spill way and earth dam may be checked for Standard Project Flood (SPF) and a breaching section may be provided for disposing of the balance flood water between Probable Maximum Flood (PMF) and Standard Project Flood (SPF).
The Government vide memo dt: 28.5.2012 have accorded permission to go ahead as per the agreement and also reiterated in the recommendations of the State Level Standing Committee. Therefore, the work is being taken up as per the Basic Project Parameters. 5.7.11 Tax/duty benefits No provision is made towards central excise/ customs duty in IBM estimate. As per the general conditions of the contract clause 45 of Agreement The bid price quoted by the Contractor shall be deemed to be inclusive of all the statutory taxes on all machinery and materials that the contractor will have to procure for performance of this contract. Similarly, as per Clause 13.04.05 of Agreement All duties, taxes and other levies payable by the contractor as per the prevailing State / Central Government rules shall be included in the contract
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value quoted by the bidder. the employer.
However, any change in Statutory
Taxes and Duties during the period of contract will be adjusted by Further, in the bid document at Clause 2 of Instructions to Bidders of Agreement it is stated that the Project is being executed for providing 4,000 cusec of water for drinking and irrigation purpose in the drought prone and fluoride affected areas of Nalgonda District. It is reported that, the bid price quoted was based on the duties, taxes and other levies payable by the contractor as per the then prevailing State/Central Government rules including certain exemptions given for Central Excise and Customs duty under General exemption No.44 vide Notification No.3-Central Excise. Dt.8.1.2004 and Notification No.14-Cus.Dt.8.1.2004 respectively. Hence, a recommendatory letter is being given. No firm was disqualified stating that the price bid was exclusive of customs duty. The only one firm was disqualified since the firm did not possess the eligibility criteria stipulated in the tender document. 5.7.12 Third Party Supervisions The quality control is being looked after by the departmental quality control wing.
5.8 Indirasagar Dummugudem Lift Irrigation Scheme 5.8.1 Profile and project formulation
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Irrigation potential envisaged: Source of water Administrative Sanction Expenditure Lift Information Power requirement Land
2 lakh acres in Khammam, Krishna and West Godavari districts 16.5 TMC from river Godavari at the foreshore of Indir asagar Rs.1824 crore (December 2005) Rs.776.42 crore (August 2011) Number : 19 Heig ht : 233 meters 229 MW Required : 5716.97acres; and Acquired : 937.26 acres
5.8.2 Preparation of Detailed Project Report ISDLIS is proposed to lift 51.50 Cumecs from River Godavari near Rudramakota (V), velerupadu (M) of Khammam (Dist.) to irrigate an ayacut of 2 Lakh Acres in Khammam, Krishna & West Godavari districts it is proposed to draw water from River Godavari at the confluence of river Sabari. However, formation of Polavaram Reservoir, which is submerging the confluence point, reduces the cost of approach channel at the head of Lift irrigation scheme due to water spread area and also the cost towards Electro Mechanical component as water will be drawn from an higher elevation instead of at river. Keeping in view of water spread area of the Polavaram Reservoir at the proposed FRL of +45.72 M, approach channel in head reach package of the lift irrigation scheme is taken up from Km.5.00 only and from an elevation + 45.00 m.
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The scheme is taken up with a presumption that the Polavaram Project will be completed by the time of completion of subject scheme. Keeping in view of delay in execution of Head works of Polavaram Project due to certain constraints, it is proposed to excavate an approach channel from a point on downstream of present intake point of ISDLIS near Thirumalapuram (V) considering the river flow pattern and to join the same with the already taken up approach channel and also to construct an auxiliary pump house to lift water directly from River Godavari at Thirumalapuram (v), Velairpadu (M). The work is carried out as per approvals by the Competent Authority as there is no change in basic parameters. At the time of preparation of DPR, the ayacut was established and accordingly, the IBM were prepared and awarded the work. During the actual execution of project works some changes have taken place on account of better technical considerations which have been approved by the technical personnel and subsequently approved by the Government as per latest guidelines/ GO's and hence the delays in execution of works can not be attributed to this aspect. Mandal wise and Village wise aycut was identified by the consultant which was made available to the executing agency for formulating proposals for distributory network. However, the work is delayed due to land acquisition, finalization of initial reaches of parent canal of the distributory network. Under packages 20 &21, 19000Acres of ayacut is available The agencies of Packages 50 and 51 have tentatively reported 1.43 lakh acres is available against 1.81 lakh acres as per agreement. The Agencies have to provide ayacut of 1.81Lakh
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Acres as per agreement and they have been advised to submit revised ayacut proposal so that as per agreement total ayacut of 1.81Lakhs acres is fulfilled. As per available data with the department this ayacut is available and they will ensure that the complete ayacut as per agreement is fulfilled. The Mandal wise village wise details of 1.81 Lakhs acres as per Department surveys are attached. Hence, the Para may be dropped.
5.8.3 Benefit Cost Ratio The project is located in the drought prone area and the BC ratio was worked out with the cropping pattern data from state agriculture department only. Regarding reduction in ayacut, it is to inform that an extent of 1.81 lakh acres irrigation potential has to be created under packages no.50 and 51, where as 0.19 lakh acres under package nos. 21 &22. The agencies of packages no 50&51 have reported availability of 1.43 lakh acres against 1.81 lakh acres. The Executive Engineer has instructed the agency, duly furnishing the district wise, mandal wise and village wise ayacut details, to resurvey in detail. There will be no short fall. Regarding acres, the proposals of distributory network 0.19 Lakh is under
finalization and the ayacut is available. The BCR is finalized duly keeping in view of the guidelines of CWC.
Hence, the para may please be dropped.
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5.8.4 Project Approvals RDLIS: Forest Clearance: Forest clearance was obtained from the Ministry of Environment and Forest vide Letter 19/2008- FC, on 30/04/2012. R&R: This project does not involve any R&R. Hence no R&R clearance is required. CWC: Out of 16 directorates, clearances received from 13 directorates and for 3 directorates, namely Hydrology, Cost Appraisal and Irrigation Planning directorates clearances are to be received, for which, remarks are being attended. After clearance of all directorates of CWC, the TAC clearance will be obtained and then the scheme will be placed before Planning Commission for investment clearance. F.No 8-
5.8.5 The
Power
supply
arrangements D.P.
to
lift
irrigation Tekulapally,
schemes: Superintending Engineer, Circle, Khammam has requested the AP TRANSCO for communicating feasibility and estimate for supply of power required for the scheme. In turn, the APTRANSCO has requested the department to deposit Rs.290.14 Crores towards the estimated cost of the transmission scheme for ISDLIS for providing 229.096 MW. The Chief Engineer during 09/2009 has addressed the Government for according permission to deposit the amount with APTRANSCO. In turn, the Government have communicated certain remarks, which were attended by the department during
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01/2010 duly obtaining the data from the APTRANSCO. Later the Government have instructed to ascertain from
APTRANSCO during 10/2010 details of Phases in which the amount of Rs.290.14 Crores can be deposited with amount of each installment. Accordingly a report was submitted to the Government by the Chief Engineer during 11/2010. The Government vide G.O.Ms No.59, dt.19-09-2011 have accorded permission to deposit the amount in 4 installments. Accordingly an amount of Rs.136.32 Crores was deposited during 02/2012 for taking up of action in construction of transmission scheme. The Power transmission scheme will be constructed by the time of completion of pump houses so that there will be no delay in commissioning the scheme. Hence, the para may please be dropped.
5.8.6 Tendering The project works, were divided into 4 packages, of which, 1 is Electro Mechanical package and 3 civil packages. Tenders were called for under EPC system, vide Tender Notice no. 2/2006-07, dt.17.7.2006 for civil packages. dt.27.10.2006. Due to technical problem, tenders were cancelled and re invited vide T.N. no.4/2006-07, Financial Bids were opened on dt.16.11.2006 and Bids received for package Nos.21 & 22 and there is no response for package No.23. The tender for package No.23 was again called in tender No.5/2006-07,Dated.18.11.2006. But no response even for second call. Hence, the works of package No.23 is divided into
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4 packages, viz., 31, 49, 50 and 51.
Tenders were called
in
tender No. 6/2006-07, dt.6.1.2007 for package No.31 and in tender No. 7/2006-07,dated.06.01.2007 for package Nos.49, 50 & 51. For the response of above tenders, single bids were received for 31,50 & 51. The bid evolution report was submitted before state level committee, member of which are ENC(I),
standing
Commissioner of Tenders(COT), CE-CDO, Deputy Financial Advisor (DFA) & Project Chief Engineer. The members of State Level Standing Committee have examined the evaluation report and after have recommended the single bid. The bid evaluation report and the minutes of State Level Standing Committee were placed before High Power Committee having members of Chief Secretary to Govt., Principal Secretary (I & CAD) and Financial Secretary. detailed discussions,
The committee examined the recommendations of State Level Standing Committee and made recommendations to accept single bid. Hence, the para may be dropped 5.8.7 Status of the Project Out of 3 pump houses of the scheme, the work at pump houses 1 & 2 is in progress. The work at pump house No.3 and the package No. 31 involved in the Forest area, for which clearance received from MoEF, New Delhi and the work will be commenced
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immediately. For packages no.50 and 51, the agencies have started the survey and investigation work. The ryots have objected for field survey. On regular pursuation by the field staff, the ryots have agreed for conducting survey work. The agency resumed the investigation and survey work in all aspects and submitted the LP schedules to land acquisition authorities. The LA process is in active progress. Work will be commenced after handing over of the site. Hence, the para may please be dropped. In packages no. 21, 22 and 31, land acquisition completed and laying of pipe line work is in progress. For approach channel in package no.22, L.A. completed and work in progress. The approach channel in package no.31 situated in forest area for which forest clearance received from MoEF, dt.30.4.2012 and the work will be commenced immediately.
In respect of 3 pump houses of the scheme, work at Pump Houses 1 and 2 is in progress. The pump house 3 is located in forest area, for which clearance received from MoEF, dt.30.4.2012 and work will be commenced immediately. Bandarugudem tank is located in forest area and the work will be commenced immdiately as forest clearance was received from MoEF. Laying of pressure main from Bandarugudem tank to Arlapenta
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Cistern is located in forest area and will be commenced immediately as forest clearance is received. The Superintending Engineer, Executive Engineers and other field Engineers are pursuing the District Collector, Special Collector (LA) and Special Deputy Collector (LA) for early completion of balance land acquisition. Hence, the para may please be dropped. 5.8.8 Synchronization of activities The work of the scheme is divided into 7 packages. The
agencies are executing the work as per agreement conditions and payments are being made accordingly. Pump House works are in progress and EM and HM items simultaneously. for EM and HM components after commissioning. has to maintain the scheme for agreement. Hence, the para may please be dropped. 5.8.9 Land acquisition Forest clearance is received from MoEF, New Delhi on 30.4.2012 and the work in these reaches will be commenced immediately. For packages no.50 and 51, the agencies have started the survey and investigation work. The ryots have objected for field survey. On regular pursuation by the field staff, the ryots have agreed for conducting survey work. The agency resumed the The department has taken an undertaking from the agency warranty The agency 15 years under O & M as per
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investigation and survey work in all aspects and submitted the LP schedules to land acquisition authorities. The LA process is in active progress. Work will be commenced after handing over of the site. The land acquisition process for the packages 21, 49 is in good progress. The EWE in package no.49 is in progress. Hence, the para may please be dropped. 5.8.10 Third Party Supervisions Before finalizing third party QC Agencies the Departmental QC Staff have inspected the execution of works. The TPQC agreements for the scheme were concluded during 02/2009. Inspection by the 3rd party Quality control agencies is satisfactory and they established central and mobile laboratories for facilitating inspection of works. Inspection reports are also being communicated by the TPQC agencies to Executive Engineers. Hence, the para may please be dropped.
5.8.11 Payment Schedules Preparation and Revisions The Government have decided to take up the projects in totality. Earlier, it was experienced in many projects, that the co-
ordination and synchronization was found missing between various components of the project, such as canals, tunnels,
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structures, lift system, reservoirs, distributary network within the package works and also between different package works as investigation, designs and execution of works were taken up simultaneously. In order to overcome this contingency, the Government have decided to concentrate on investigation and designs and freeze the design parameters before taking up actual execution of works. Now, in view of the above circumstances of taking up investigation and design works along, it is very difficult to take up these huge activities involved under each component with the provisions made in the original payments schedule, without supplementation from execution of the works. In fact, about 1% of the value of the lift system is being paid to A.P. Genco for vetting of the designs alone. The provisions required for investigation and design of these components as per CWC guidelines would be around 5% where as the actual provision made in the IBM estimates is 0.43% to 1% only which is much below the standard CWC norms. Hence, it is found inevitable to revise the payment schedule, stage-wise for each component of works such as canals, tunnels, structures, lift system, reservoirs and distributary network as each of the above components in turn involve investigation and designs activities besides actual execution in work items. However, the total weightage for each component and the total price are kept unaltered as shown in the original payment schedule in Annexure-II.
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While making the revised payment schedule stage wise for each component, the sum of the sub-components towards investigation and design works is limited to the guidelines as stipulated by CWC, i.e., ranging from 2% to 3.5%, depending on the components involved in the relevant package, which is below 5%. These sub-component towards investigation and designs is a part taken out from the work items and the same will be get reduced to that ex extent from work items of the above components. As per para 306(7) of AP Public works account code, the Chief Engineer is empowered to modify the percentage of components keeping the total price bid unaltered in respect of works accepted by authorities above the level of Chief Engineer. The Superintending Engineer in empowered to modify the sub components reach wise /stage wise keeping the percentages of component unaltered. Keeping in view the above para, the Chief Engineer has modified the component wise price break up in r/o RDLIS, ISRLIS and JRPDNSS only keeping the total price bid unaltered. Based on the revised component wise price breakup, the Superintending break up Engineer duly approved the the subcomponent price keeping component
percentages unaltered. These sub component revision is for reach wise and stage wise only and there are no repeated revisions for the same components or sub components. In payment schedules 1% of the Agreement value was separately provided towards O&M component for the O&M period in respect of civil works and 7.5% for the packages
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having electro mechanical components. The O & M payments will be made during O & M period only.
In view of the above, the para may be dropped.
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5.9 Rajiv Dummugudem Lift Irrigation Scheme 5.9.1 Profile and project formulation
Irrigation potential envisaged: 2 lakh acres in Khammam district Drinking water facilities Source of water Components Administrative sanction Expenditure Land Power
5.9.2 Planning YES 5.9.3 Preparation of Detailed Project Report Rajiv Dummugudem Lift Irrigation Project preliminary report was prepared and submitted to Central water commission for according in principle clearance. CWC accorded in principle
6.63 lakh people Proposes to lift 16.5 TMC from river Godavari in monsoon at Pamulapally in Khammam district seven stage lifting apart from six balancing tanks Rs.1681 crore (December 2005) Rs.534.86 crore (August 2011) Required:6192.57acres and Acquired:730.35 acres Required:120MW
clearance vide Lr. No 6/263/05-PA(S)/869 Dt 19.06.2007. A copy of feasibility report of RDLIS is enclosed. The scheme is on up stream of existing Dummudugudem anicut and Polavarm project is far down stream side of the scheme. As such RDLIS is
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not linked with Polavaram project regarding drawl of water. 5.9.4 Benefit Cost Ratio Rajiv Dummugudem Lift Irrigation Project preliminary report was prepared and submitted to Central water commission for according in principle clearance. CWC accorded in principle
clearance vide Lr. No 6/263/05-PA(S)/869 Dt 19.06.2007. A copy of feasibility report of RDLIS is enclosed. The scheme is on up stream of existing Dummudugudem anicut and Polavarm project is far down stream side of the scheme. As such RDLIS is not linked with Polavaram project regarding drawl of water.
5.9.5 Clearance from Central Water Commission For Rajiv Dummugudem Lift Irrigation Project, CWC Clearances are as follows.
CWC out of 16 Directorates Clearances 12 Clearances were received. The Clearances of balance Directorates namely Hydrology, Irrigation planning, inter state matters and Cost Appraisal are to be obtained for which the remarks are being attended. After the Clearances of all Directorates from CWC the Technical advisory committee meeting will be conducted and after approval of TAC the project will be placed before planning commission for obtaining investment clearance.
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5.9.6 Project Approvals Feasibility report is here with enclosed. Forest clearance
proposals were submitted to the principal Chief Conservator of Forest of Forest Department of GOAP and remarks are being attended. MOTA clearance proposals were submitted to the state Govt. and are under scrutiny.
5.9.7 Tendering Tendering process is online process using e-procurement website. Tenders for Package 1/1,which consists of construction of Pump houses including erection of Electro mechanical and hydro mechanical components, were called for in open category, vide tender notice no:1/2006 -2007,dt:17.07.2006.The last date for bid submission was 25.01.2007.Even after providing sufficient time of more than 4 months period, only single tender was received. The bid evaluation report was submitted to state level standing committee which has recommended for acceptance of single bid. Based on this recommendation, the high power committee has recommended on 12.02.2008 for acceptance of single bid of M/s Kirloskar Brothers which stands at 0.411% less. Accordingly the Government accepted the bid. As the tender notice was published in two news papers, one each in English and Telugu news papers and was placed in Eprocument Web site for wide publicity.
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Package 32 M/s HCCL has quoted the bid at the percentage 4.95% excess. M/s Jaiprakash Gayathri (JV) has quoted at the percentage 6.306% excess. The lowest tender from the above was M/s HCCL and the work was awarded. Package 33 M/s HCCL has quoted the bid at the percentage 4.95% excess. M/s Jaiprakash Gayathri (JV) has quoted at the percentage 4.862% excess. The lowest tender from the above was M/s Jaiprakash Gayathri (JV) and the work was awarded. As the tenders were called for on web based E- procurement platform and the bids were received on line only, the department has no mechanism to identified cartelization. Package No.32 : 49.024% the work was sublet to M/s MEIL after approval of Bid Accepting Authority, i.e., the Government vide G.O.Rt.No.332, I&CAD (PW.Maj.III) Department, dt:11.04.2008. The balance work is being carried out by the HCCL only. Package No.33 : The work is being carried out by the M/s Jaiprakash Gayathri (JV)only. As such, the para may please be dropped.
5.9.8 Status of the project

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RDLIS consists of seven packages. The status of the each package is as follows: Package No.1/1 The package consists of 7 pump houses. Out of 7 PHs 4 PHs are in good progress and remaining 3 PHs, for which 1 PHs has involved forest land and other 2 PHs Land Acquisition is in good progress. Soon after receipt of land the work will be started. Package No.32: About 80% of the work is completed. Package No.33: About 53% of the work is completed. Package No.68: It consists of Gravity Canal length of 43Kmts. Out of which 4 Km. is in progress. Package No.1/2007: Gravity Canal from Cistern at 6.2Km to
Lalithapuram tank was completed. Construction of staff quarters at 4 places out of 7 places is in progress. Package No.66: Investigation and Survey work was completed; the designs work is in progress. LP Scheduled were submitted to LA authorities. Land Acquisition is in brisk progress. Soon after receipt of Land the work will be started. Package No.67: The investigation and Survey work is in
progress. LP Schedules were submitted to LA authorities. Soon after receipt of Land the work will be started. For RDLIS main bottle neck is forest land. The forest land
requirement for the project is about 1503 Acres. The Chief Engineer and the Superintending Engineers addressed the District Collector for identification of CA land. Accordingly the District Collector, Khammam has conducted a meeting at RDO office
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Palvoncha with all RDOs of the Kahmmam District and instructed to identify the suitable land for the project on war footing basis and the matter is being constantly pursued.
For RDLIS main bottle neck is forest land.
The forest land
requirement for the project is about 1503 Acres. The Cheif Engineer and the Superintending Engineers addressed the District Collector for identification of CA land. Accordingly the the District Collector, Khammam has conducted a meeting at RDO office Palavoncha with all RDO of the Khammam District and instructed to indentify the suitable land for the project on war putting basis report same and it is in process. Hence the para may please be dropped.
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5.9.9 Synchronization of activities : Rajiv Dummugudem Lift Irrigation Project works dividing in to 7 Packages. The Package wise works are executed as per agreement conditions and accordingly payments were made. The pipe laying work is in progress as soon as the land is being cleared as such there is no blocking of funds. Hence, para may please be dropped. The pumps and motors are not readily available in open market. The procurement for pumps and motors have to be made with specific orders with foreign countries. Hence, the para may please be dropped. 5.9.10 Compromise/ Reduction in Specifications: Under EPC system it is a practice that the agencies investigate different solutions and will propose them and the best of which could be accepted by the competent authority after due examination of the proposal for its technical suitability for the project. Further the proposal should be in line with the basic 32 the length of the pipelines parameters of the agreement. In the basic parameters Part-D of the agreement for the Package have not been mentioned. In Rajiv Sagar Package 32 the length of pipe line is reduced. But the agencies have proposed approach canals for certain lengths of the alignment instead of pipe lines based on the field conditions in the alignment and they have to excavate these
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approach channels by incurring expenditure. Different deign solutions could be proposed by the contractor the best of which could be accepted by competent authority after due examination of technological superiority and establishing the best solution for the purpose in the project. There is always only one best design solution for the purpose of achieving the goals of the project. As a general rule, the cost on any component due to any implementation of approved design should always be on contractors accounts with in the cost of the total contracted amount under EPC until and unless such designs effectively change any of the basic parameters as defined as above. The balance length of pressure main is proposed as approach channel depending on the field conditions in the alignment. Accordingly the Chief Engineer has approved the proposed alignment by the agency based on the Engineer In- Chief (Irrigation) feasibility report as there is no change in length and as per circular memo. No. 34843/ Project /2006, Dt; 07-05-2008. As the above proposals are as per the basic project parameters in the agreement. No specific change has been proposed in the proposal. The reduction in pipe line length had to be compensated by excavating additional lengths of approach channel and the agencies have to spend considerable amounts on approach channel. given as Further it is to be mentioned that the original Rs. 25,400/ton. The agency has supplied the pipes agreement is entered in 6/2007. The SSR rates for HR coil are during the year 2007 and 2008. The department after through examination of the proposal of the agency, have accorded
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approval for the proposal of approach channel is so much as there were no deviations from the basic parameters of the project. It is to mention that during March and April, 2008 the HR coil has gone up to Rs. 57,000/ton and if the agency had supplied the pipes for the length of approach channel, as per price variation clause, there would have been additional expenditure of more than Rs. 69 Crores, as the agency would have got the additional payments due to price variation clause itself. Further it is to be informed that the agency has to excavate the approach canal for increased length as per site condition. Further considering the amounts to be spent for excavation of approach channel is included; the agency has to spend much more than that. Hence arriving at the cost of reduction of work at Rs. 106.65 Crores without assessing the cost of various lengths of approach channel converted from pressure mains is not tenable. Further it is to be mentioned that there is no change in length and as per Circular Memo. No. 34843/Project/2006, dt: 07.05.2008, the proposals of the agency are as per the basic project parameters in the agreement. on specification. Further in EPC system the cost on any component due to implementation of approved designs will be on contractors account with in the contracted amount. Hence, the draft audit Para may be dropped for inclusion. 5.9.11 Rehabilitation and Resettlement Notification for R&R of Marellapadu Reservoir is under process at There is no compromise
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Govt. Level. Revenue Divisional Officer, Paloncha was appointed as R&R. Officer for R&R of Marellapadu Reservoir. R&R works will be initiated with co-ordination of Revenue department.
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5.10 Devadula Lift Irrigation Scheme (J. Chokka Rao Godavari Lift Irrigation Scheme) 5.10.1 Project Formulation and Basic Information
Sl. No. 1 2 3 Description Cost of Project Lift in Meters Length of Pipe Line / Gravity Canal Ayacut Capacity of Pumps @ Cumecs each No. of Pipe Lines Quantum of water Power Requirement Phase-I 1319.38 Cr (Revised) 268.00M 138.90 Km. 1,22,700 Ac. 5 x2 = 10 Cumecs 1 No. of 2.5M dia 5.18 TMC 56.00 MW Phase-II 1887.00 Cr 469.00M 208.4 Km. 1,79,260 Ac 7 x2 = 14 Cumecs 1 No. of 3.0M, 2.5 & 2.0 M dia 7.25 TMC 123.60 MW Phase-III 5789.00 Cr 510.00M 113.00 Km. 2,41,790 Ac. 3 x 16.534 = 49.600 Cumecs 3 NOs., of 3 M dia, 1 No., of 2.60M, 1.90 M, 0.90M & 0.50M dia 25.73 TMC 304.40 MW
4 5
7 8
Total Power Requirement = 484.00 MW
5.10.2 Preparation of Detailed Project Report The Government had decided to ground the works of Phase-I of JCR-DLIS and issued instructions to the Project authorities to adopt Engineering, Procurement and Construction (EPC) System of contract for GLIS vide G.O.Rt.No. 599, I&CAD (PW-GV.1) Deptt, Dt: 02-08-2003. M/s. WAPCOS have furnished one set of Tender documents vide letter No. WAP/GLIS/ Tender/03/414, Dt: 09-08-2003 and the Tender documents was approved by the CE/GLIS/Wgl. vide Proc.No. CE/GLIS/Wgl/DCE/OT1/AE1/5-1/
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2003, Dt: 02-08-2003. During the preparation of estimate of Package-III of Phase- III the Executive Engineer, JCR-DLIS Division No.3, Warangal have addressed the Executive Engineer, Irrigation Circle, Warangal, Mulugu Division for furnishing the particulars of Ramappa tank accordingly the Executive Engineer furnished the copy of particulars of Ramappa tank in which the FRL of tank is mentioned as +202.970 M and the same value is incorporated in the Agreement. While conducting the detail investigation the FRL value of Ramappa tank is found as +209.380 M as against +202.970 M the same was brought to the notice of higher authorities and as per the instructions of the higher authorities conducted the DCBM (Survey and connected to GTS at karkaplally (V) near Ghanpur (M) cross road and the FRL value of Ramappa tank of +209.380 M is confirmed. The same was confirmed by conducting jointly DCBM survey conducted and the same value is confirmed. Due to this reason the total execution of work was not delayed except fixation of minimum water level of the Surge Pool. Hence the para may please be dropped.
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5.10.3 Overlap of ayacut

The GLIS and FFC Phase-II Ayacut is overlapping in Warangal and Nalgonda Districts. The overlapping Ayacut is 30,000 Acres in Warangal District and 30,000 Acres in Nalgonda District totaling to 60,000 Acres. The total area of 60000 Acres in Warangal District is commendable under FFC, with water lifted by lower static head when compare to commendability under GLIS, so there is technical feasibility for inclusion of this area under FFC system, moreover the tenders for Phase-II distributory system of FFC were called for and works are grounded. The GLIS Ayacut is also surrounding the Ayacut of the FFC phase-II in Nalgonda District. Hence it is deleted 60,000 Acres from the FFC phaseII Ayacut in Nalgonda District and included in GLIS Ayacut to have the total Ayacut of the projects as a unit instead of running both the projects parallely.
The originally contemplated Ayacut in GLIS through R.S.Ghanpur and Ashwaraopally left canals to an extent of 21,000 Acres is deleted from the scope of JCR-GLIP and included in the FFC Phase-II Ayacut. Further there is a gap Ayacut of 39,000 Acres in Karimnagar District in the elevation between +400 to + 300 contours which will come under the command of GLIS was included in FFC.II thus totaling to 60,000 Acres. With all the above considerations there is no change in overall Ayacut of both the projects as contemplated originally in the projects i.e., J.Chokka Rao D.L.I.Scheme 6,46,580 Acres and FFC Phase-II 1,20,000 Acres.
In view of the Public representations, to provide irrigation facility an extent of 67,500 Acres in Narsampet and Cherial Constituencies, which is not covered in the DPR
of JCR-DLIS. The CWC had given clearance to utilize water of 38.16 TMC. In view of constraint of water availability if any new area is to be tagged to the sanction scheme, then some area have to be deleted. The Government accorded vide G.O.MS.No.141, dt:14.07.2008 for deleting tail end ayacut of 67,500 acres proposed under GLI Scheme in Nalgonda district and to this extent it is added to Dr B.R Ambedkar Pranahita Chevella LI Scheme and lieu of this deletion, the near by ayacut which is technically commendable with water lifted from low static head is included to the extent of deletion under details as follows. 1. 2. 3. 4. 32,500 acres in Narsamper constituency 29,000 acres in cherial constituency 4,000 acres in Narayanapur village 2,000 acres in under Tapaspally and Guruvvannapet (V) of Warangal Dist.
As per Detailed Project, Report Chapter-7, Page-15 of Irrigation Planning Volume-I, the total extent of 6,46,580 Ac. is proposed under different tanks. As per Detailed Project Report Quantum of water Proposed to lift from river Godavari Water for Non-Agriculture (Drinking & Industrial usage) : 38.182 TMC : (-) 1.932 TMC
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Net available for Irrigation
36.25 TMC = 36.25
As per GO No.34,the proposed ayacut for 36.25 TMC of water is x 15000 = 5,43,750 Acres. Total ayacut under DLIS including tank ayacut = 5,43,750 + 77250 = 6,21,000 Acres.
Hence, Planning of the department is in order. The works of JCR-DLIS Phase-I, II & III has been awarded on Turnkey System duly fixing ayacut under Phase-I: 1.23 lakhs, Phase-II: 1.79 lakhs & Phase-III: 2.42 Lakhs Acres, which worksout to total ayacut of 6.21 lakhs of which 5.44 lakhs Acres with water lifted from Godavari and load water and water from original catchment area of tanks proposed under GLIS & 77,000 Acres with additional ground water generated from imported water from outside the area. As such the Project serves the financial interest of state and objective of Project.
5.10.4 Benefit Cost Ratio

The B.C ratio was worked out to 1.20 in the original DPR. As per the DPR, the total extent of ayacut is : 6,46,580 Acres. 77,160 Acres. ------------------569420 Acres -------------------
Less: Ayacut under Tanks in the command area:
As per the G.O. No. 34, dated: 09-02-2007 for 36.25 TMC, the ayacut covered is 543750 Acres. Hence, the ayacut restricted to 543750 + 77250 = 621010 Acres. The reduction in ayacut is 569420 -543750 = 25670 Acres, (3.97%). The ayacut is fixed, there is only a meager variation and the ayacut is firmed up by the CWC, the accepted BCR Value for L.I.Scheme is 1. so the BCR calculations for an ayauct of
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6,46,580 acres is 1.37 well above 1. even with reduced ayacut of 25,570 acres, the BCR will be in safe limit. The rates of crop produce has been increased based on price index at the time of revision of the cost of project. In addition to agricultural benefits there are substantiate benefits due to fishers, horticulture other benefits as new Irrigation tank are formed. The rates of crop produce adopted for calculation BC ratio duly adopting the maximum rate, as generally the crop produce will be sold by the farmers in the market, preferably at higher rates. Hence, the BCR of the Project is not overstated.
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5.10.5 Project Approvals No Comment 5.10.6 Forest Clearance The investigation is part of the EPC contract system, subsequent to investigation only, the alignment of tunnel/ adit/canal / tanks are fixed and the extent of forest involvement can be assessed. The proposals are submitted to forest department and time to time it is persued with them for getting approval. In respect of Phase-III- Package-III of JCRDLIS, the alignment of the main tunnel passes through Jakaram Reserve Forest for a length of 5.75 Kms. Forest land was also required for Audit Tunnel. The proposals of under ground tunnel alignment in the Jakaram RF area were not submitted for approval, perceiving that the forest clearance is not necessary, as the tunnel is passing underneath of the Jakaram Forest area. But, as per the norms of the Forest Department, the approval is necessitated during the execution of work.Accordingly the department identified the forest land and the proposals were submitted immediately for diversion of 3.834Ha (Ac. 9-19 Gts) of forest land to the Forest Department for necessary forest clearances/ approvals. Accordingly, The Ministry of Environment & Forest, Government of India has accorded in principle (Stage-I) approval U/s-2 of Forest (Conservation) Act, 1980 for diversion of 3.834 Ha of forest land in Jakaram RF of Warangal(North) Division.
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Stage-II Clearances from the Forest Department is awaited and is under process. 5.10.7 Adhocism in taking up projects J. Chokka Rao Devadula Lift Irrigation Scheme is proposed to lift water from river Godavary District at to Gangaram create an (V) .Eturnagarm(M),Warangal irrigation
potential of 6,21,000 Acres and to provide drinking water facility to enroute rural villages and tanks in drought prone up land areas of Warangal, Karimanagr and Nalgonda Districts. The allocation of water for Irrigation, Urban & Rural and Industrial needs is firmed up by the CWC and is as follows. Water for agriculture use Drinking water needs Industrial water supply Total The Phase-I : : : : : 36.25 TMC 0.56 TMC (Urban) 1.36 TMC (Rural) 0.012 TMC 38.182 TMC
is proposed to lift 5.18 TMC of water.
The Distributory system in phase-I is proposed to create an irrigation potential of 1, 22,700 Acres under Package -45 & 46.
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Details are as follows: Package-45 : 15,300 Acres South Main 31,000 Acres Package-46 : South Main Canal of Dharmasagar - 91,700 Acres The duty adopted for the above ayacut is 220 Acres/ Cusec and the ayacut per TMC is 15000 Acres. As per the water available in Phase-I, the ayacut irrigated i.e @ the rate of 15000 Acres per TMC to be North Main Canal of Dharmasagar
Canal of Dharmasagar 15,7 00 Acres
is 77,700 Acres.
The short fall of water for the balance ayacut (122,700-77700) at the rate of TMC
i.e 45000 Acres
15000 Acres per TMC is 3.00
Therefore short fall of water in Phase-I is 3.00 TMC The Phase-II is proposed to lift 7.25 TMC of water.
The Distributory system in Phase-II is proposed to create an irrigation potential of 1, 79,260 Acres under under R.S.Ghanpur distributory system, Ashwaraopally and Chittakopdur Distributory System and Tapaspally Distributory System.
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The details are as follows: I. R.S.Ghanpur Distriburoty System : 30,444 Acres (excluding 4L-Distributory system) 4L-Distributory system : 24,016 Acres Total : 54,460Acres II. Ashwaraopally & Chittakodur Distributory System ( Including Distributory system under Gravity Canal) : 56,100 Acres
III .Tapaspally Distributory System : 67,000 Acres GrandTotal : 1,79,260Acres
The duty adopted for the above ayacut is 110 acres/ Cusec and the ayacut per TMC is 15000 Acres. As per the water available in Phase-II, the ayacut to be irrigated i.e @ the rate of 15,000 Acres per TMC 1,08,750 Acres. The short fall of water for the balance ayacut i.e 70510Acres (1,79,260 - 1,08,750) at the rate of TMC. 15000 per TMC is 4.701 is
Therefore short fall of water in Phase-II is 4.701 TMC. The phase-III is proposed to lift 25.735 TMC of water by
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keeping in view of the short fall of water in Phase-I & II , water for ayacut under Phase-III packages for creation of I.P of 2,41,790 Acres and drinking water areas and industrial needs. Increase in the designed discharge of Phase-III was only to make up the error in designing the earlier phases is not correct, as the Scheme is taken up to complete in three Phases to accrue the immediate benefits to up land drought prone areas of backward districts. All these points are considered by the CWC and considering the above aspects only, the scheme is approved. The assumption of duty of 150 Acres / cusec is applicable to Phase-I ayacut of 1,22,700 Acres only. 36,810 Acres. Subsequently, the Government have taken decision to excavate the field channels instead of Micro Irrigation. Hence, the cost towards Micro-irrigation for ayacut of 36,810 Acres is meager, and this ayacut can also be irrigated under the local ponds etc., and field channels. The balance ayacut will be irrigated in addition to available water, self catchment water of balancing reservoirs and regenerated water by means of field channels. So, for the total ayacut the field channels network has to be developed as the Micro irrigation is dispensed with.
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facility for Urban & Rural
Out of which 30% of
ayacut is proposed under micro irrigation i.e., 1,22,700 x 0.30 =
As per the DPR vide page No. 9 chapter 1 of Volume-1 the details area as follows. Diverted water from Godavari @ 75% dependability Described load water,local water @ 75% dependability :38.16 TMC
: 8.20 TMC
Additional Ground water regenerated from imported water from out side the area : 5.65 TMC Total water : 52.01 TMC Less evaporation losses Balance available water for utilization Reserved for Drinking water water available for irrigation Reserved for industrial Water available for irrigation (-)2.96 TMC : 49.05 TMC Net
(-) 1.92 TMC : 47.13 TMC (-) 0.012 TMC : 47.118 TMC
As seen from above the yield of local water of 8.20 TMC available from self catchment of tanks. Therefore the water available for irrigation with lifted water and the self catchment of tanks is 44.45 TMC (36.25+8.20). If we consider the evaporation losses of 2.96 TMC of water, the water available for irrigation is 41.49 TMC (44.45-2.96) .The total ayacut i.e., 621000 acres can be irrigated at the duty of 15000 acres/ 1 TMC.So there would be no short fall of water even if entire ayacut is brought under Micro irrigation system.
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The water availability is firmed by the CWC. Hence the para may pleased be dropped The South Main Canal of Dharmasagar Tank is designed to carry the water for 2,17,700 acres to irrigate an irrigation under potential of 15,700 Acres under package-45 & 91, 700
Package-46 and to feed Nashkal Tank, Palakurthy Tank and Chennur Tank to create irrigation potential under these tanks in Phase-III. Originally, an ayacut of 2,17,700 acres was proposed under South Main Canal of Dharmasagar Tank. The required discharge of South Main Canal for 2,17,700 Acres with a duty of 220 Acres/Cusec is 28.02 Cumecs.
Later the duty changed from 220 Acres per Cusec to 150 Acres per Cusec. The discharge required for 1,07,400 Acres(15700+91700) under South Main Canal of Dharmasagar Tank 150Acres per Cusec is 20.275 Cumecs. The water available beyond South Main canal i.e Tail End is 7.745 Cumecs (28.02-20.275) for the ayacut proposed in PhaseIII under Nashkal Tank, Palakurthy Tank and Chennur Tank. The duty adopted in Phase-III is 110Acres per Cusec, The with a duty of
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proposed ayacut under these three tanks is 77,890 Aces.The ayacut Details are as follows.
[
1.Nashkal Tank 2. Palakurthy Tank 3. Chennur Tank Total
: 45210 Acres : : : 7515 Acres 25165 Acres 77,890 Acres
The Chennur Tank is proposed fed with 4L Distributory system of Right Flank Main Canal of R.S.Ghanpur Reservoir. After deletion of Chennur Tank ayacut from the water source of Dharmasagar South Main canal beyond Tail end is 52,725 Acres(77890-25165). With the balance available water of South Main Canal beyond Tail End an ayacut of 30087 acres can be irrigated in phase-III with a duty of 110acres per Cusec (Duty adopted in Phase-III is110 acre s per Cusec). The balance ayacut is 22638 Acres(52,725-30087). This ayacut can be irrigated through the self catchment area of Nashkal Tank is having its own catchment area and maximum flood discharge is 1030Cumecs. The CWC approved the scheme duly utilizing 8.20 TMC of water from the original ctchment area of tanks. Accordingly it is proposed to utilize the water of Nashkal tanK catchment area to irrigate the balance ayacut. Hence there is no mismatch between design of Main canal and Ditributories
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The contemplated ayacut under Ashwaraopally RMC was 93,000 Acres, of this 43,000 Acres of Ayacut was proposed to be taken up under Phase-II of JCRDLIS up to Aler Vagu under the distributory system of Ashwaraopally Right Main Canal from Km. 0.00 to 35.275. the remaining 50,000 Acres of ayacut was proposed to be taken up under Phase-III of JCRDLIS, by formation of new balancing reservoir across the Aler Vagu at Ekkurthy Village, Aler Mandal, Nalgonda District was to fed by the Ashwaraopally Right Main Canal. At this stage, the alignment of the Ashwaraopally Main Canal has been already approved, work was grounded on 28.11.2007 and attained progress. Owing to various reasons the Government issued the G.O.Ms.No.141, Dt: 14.07.2008 to delete the tail end ayacut of JCRDLIS under PhaseIII and ordered to include the deleted ayacut in the ongoing Pranahita Chevella Project., Nalgonda District which was actually fed by the Ashwaraopally Right Main Canal. The area is predominantly drought prone and upland, enroute tanks can fed from already designed canal water from the original catchment of Ashwaraopally tank. The over designs section can be utilized in peak hour demand. In this regard 50,000 Acres of ayacut under Ekkurthy balancing reservoir which was contemplated under Ashwaraopally Right Main Canal, was deleted in middle of the execution stage and tagged to Pranahita Chevella Scheme. Over designing of Canal : The R.F. Main Canal of R.S.Ghanpur Reservoir under phase-II is designed for an ayacut of 1,51,000 acres apart from creation of I.P. under Main Canal and distributaries and the I.P creation in the other packages of Phase-III below this work. The details of the ayacut to be fed
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from the R.F. Main Canal is as follows. 1) Ayacut under R.F. Main Canal to distributary System 2) Ayacut under 4L distributary 3) Ayacut under Nawabpet Tank Total diverted : 30,444 acres : 24016 acres : 25165 acres : 53,400 acres : 1,33,025 acres
3) To feed Chennur Tank through 4L
4) Ayacut to an extent on Ac.17,975 in Nalgonda District is under Pranahitha Chevella Scheme, as per the minutes of meeting of Chief Engineer, GLIS, Warangal. In peak demand the water can be supplied to the Agriculture and for drinking water schemes to the enroute tanks and also under Nawabpet tank as per the requirement of drinking water for rural water supply and industrial needs as mentioned in the DPR. The canal design meets the above requirement. Hence the Para may pleas be dropped. 5.10.8 Power supply arrangements The APTRANSCO had given consent to supply the for 419 MW out of total requirement of 484 MW. On request of the project authorities, the Government has issued directions to APTRANSCO authorities to issue consent for additional power supply of 65 MW vide Govt. Lr. No. 20651-F/EA-2/2005, dated: 27-06-2011. It is under active consideration. 5.10.9 Tendering No Comment
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5.10.10 Changing IBM values after opening of bids/Incorrect bid evaluations The IBM estimate for an amount of Rs.737.49 Crores for the phase-I works was accorded approval by the IBM Committee, which is not inclusive of Rs.44.10 crore towards provision of escalation cost of steel, designing and engineering, O&M and approach road from Eturunagaram to Gangaram tank.
In the minutes of Evaluation committee on the price bid on 11.11.2003,the committee agreed to incorporate an amount of Rs.44.10 Crores towards escalation cost of steel for Rs 32,72,78,343 and cost of Design & Engineering at the rate of 1% amounting for Rs. 7,37,49,490/- , O&M for 2 years amounting for Rs. 2,00,00,000/- and Approach road to river intake at Gangaram including CD&CM works for Rs. 2,00,00,000/- to the Technical sanctioned estimate i.e., Rs 737.49 Crores, because all the above components have not been included in this sanctioned amount. So, Rs.44.10 Crores were added to initial internal cost
assessment Rs 737.49 Crores. The contractor will not quote the price of Rs.843.97 Crores, foreseeing the initial internal cost assessment to Rs.781.59 Crores. Therefore contracting Agency quoted Amount Rs 843.97 Crores fall within the permissible limits of 10% and became acceptable may not be correct.
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5.10.11 Status of the Project Package-46 is covered under Phase-I with an proposed ayacut of 91,700 Acres. The progress of works is hampered due to delay in land
acquisition from km.9.975 to km.14.170 in D8 of South Main Canal of Package-46 in the limits of Bollikunta (v), Sangem (M), Warangal District , an ayacut of 47,119 Acres could not be brought to irrigation. The D-8 is passing near by Urban area, the land cost is very high, and the farmers are demanding hike in land compensation amount, they are strongly protesting against the LA process. The land is not acquired from km.10.450 to km.11.000 of D8 and it is at DN & DD stage only. The provision for DLRB at km.10.68 on D8 of South Main Canal is made in the Agreement.As per the requisition of the R&B Department; it is proposed an FLRB at km.10.68. It is under process. Under D-9 of South Main Canal the total number of minors are 18 Nos., out which the xcavation of 14 Nos., of minors is completed,4 Nos., of minors are in progress. Only 12,054 Acres could be irrigated as against 19,643 Acres, as field channel works were not completed,on the plea of ryots of standing crops during Khariff-2011. The agency is now making efforts to expedite the work to achieve progress. The I.P. Created up to March-2012 under distributaries of 45 & 46 is 41,304 acres, and it is planned for I.P. Creation of 33,236 acres for Khariff388
2012, duly resolving land acquisition problems. The Phase-I work completed in all respects, except
commissioning of SCADA & V-SAT communication system. Trial run of Phase-I pumping system was successfully completed and also O&M period is awarded to the agency, which is in force. The excavation of North Canal 22.70 km completed against 24.00 km and South Canal 11.40 km completed against 11.60 km. CC lining 16.82 km completed against 41.15 km and Distributory excavation 80.363 km against 115.286 km. The excavation South Canal against 240.11 Kms. Laying of Pipe line totally completed for length of 196.40 Kms.,, 7 Nos., of Pump Houses completed in respects. Trial run of Motors completed and water successfully pumped. 16.90 Kms., completed against
16.90 Kms., distributaries excavation 110.18 Km.s., completed
The Excavation of Main canal 29.125 Kms., completed against 30.775 Km. Distributaries 13.379 Kms., completed against 161.00 Kms., lining 4.885 Kms., completed against 19.375 Kms.,
The Excavation of
Main canal 19.300 Kms., completed against
19.300 Kms., Distributaries excavation 47.00 Kms., completed against 198.495 Kms., Lining 15.650 Kms., completed against 74.950 Kms.,
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The Excavation of Kms.,
Main canal 29.510 Kms., completed against
50.740 Kms., Lining 17.900 Kms., completed against 62.275
Laying of Pipeline were completed 106.210 Kms., against 116.250 Kms., only 4 Nos., Designs are pending at CE/CDO/Hyd., Investigation completed. Tunnel excavation 1.850 Kms.,
completed against 19.625 Kms., Gravity and approach excavation completed for length of 2.20 Kms., Investigation Kms.,. Investigation completed. Laying of pipe line 69.550 Kms., completed as against 75.00 Kms. Investigation of Rangaiah & Yerraiah Cheruvu is in progress. Laying of pipe line 3.669 Kms., completed as against 14.800 Kms. Investigation is in progress. Hydraulic Particulars Nashkal to Palakurthy tank approved. Investigation completed. Nawabpet Main Canal 14.725 Kms., completed against 16.100 Kms., distributory excavation completed 19.120 Kms., against 73.750 Kms., formation of earth bund is in progress. Formation of earth bund 5.015 Kms., completed improvements to tank 1 No. in progress. Main canal excavation 19.325 Kms., completed as against 37.650 Km. completed. Tunnel excavation 26.650 Kms.,
completed against 54.880 Kms., Tunnel lining completed 1.200
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5.10.12 Time over runs During the planning time of 3L-8L-D8 of South Main Canal the total area of lands was agriculture lands. Subsequently the land pattern was changed and Mamnoor villages. The Grampanchayat resolutions for the above villages are not there. Only the surpanches have represented it. Even then, the Department is planning to convince the ryots to excavate the canal and to bring the ayacut into command beyond these villages. Moreover, the local ground water table will be recharged through the excavation of 3L-8L-D8 canal. The lands were converted to urbanization as these lands are very nearer to Warangal city but not due to lack of water as contended by Audit personnel. 5.10.13 Land acquisition In respect of Phase-III- Package-III under JCRDLIS, as on 30th April, 2012 the total requirement of land is Ac. 644-06 Gts to execute the tunnel work but not 530 acres. Wherein, an extent of Ac.68 09 Gts acquired and the work is in progress. And the Agency has not revised the Land area to 448.45 acres. So the Land Acquisition requirement is in order.
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converted as residential plots and
commercial establishments were developed in Thimmapur and
5.10.14 Coordination with Statutory organizations The joint inspection was conducted on 06.02.2012 by the railway authorities and given permission for canal crossing the track at 4 locations and was advised to pay Rs. 12,00,000/towards cent age charges and for 2 locations of canal crossings advised to change the canal alignment vide Lr. No.CW/71/DB/Canal Crossing/ 6 Locations (SC-KZJ), Dt: 27.02.2012. In this connection the Railway authorities again requested to inspect the site for feasibility of locations to take up the work soon. With the co-ordination of Railway authorities the work will be taken up immediately. 5.10.15 Issues relating to safety and precautions during execution The Geologist from GSI, Hyderabad has suggested that, in the reach between Ch.12 Km and Ch.54.88 Km., the tunnel passes through granitic rocks, Reservoir like Salivagu, Nagaram Cheruvu and other Minor tanks are present along the proposed tunnel alignment. Because of the presence of water in these lakes high inflow is expected at tunnel grade in these reaches. This nececiates proper preventive measures to avoid causalities. The effects of seepage through joint planes underlying the water bodies can be assessed during excavation of the tunnel. Accordingly, the Agency have taken preventive measures line advance probing during the advancement of tunnel facing, controlled blasting measures, rock bolting, short creets, rib supporting etc., with these preventive measures the Agency completed the tunneling work underneath the Salivagu tank from Km. 16.089 to Km. 16.942 for length of 853 M as against total
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length of 1461 M. But, due to unexpected sudden failure of rock mass at crown the tunnel is caved in and heavy water gushed inside the tunnel, inundating the entire area in short time. This fatal accident occurred on 14th July 2011. There was no indication of any heavy or abnormality is observed in seepage prior to sudden collapse of rock mass, thus no preventive action was possible. The rectification work taken up by the agency dulyobtaining necessary permissions from the district local authorities. This rectification work is completed by June 30th 2012 as per the recommendations of the Director, GSI, Hyderabad and as per the instructions of the higher authorities 5.10.16 Assessing and drafting of requirements Subsequent to the receipt and opening of the bids of Phase-I, the amount Rs.2.00 Crores were added to the IBM towards Approach road to river Intake at Gangaram including CD & CM works as per committee decisions, but not for Approach road from Eturunagaram to Gangaram Tank as pointed out by the Audit party. Further it is submitted that, the work of approach road from Eturunagaram to Gangaram was not surfaced and discussed anywhere in the minutes of Evaluation committee on 11.11.2003. Further it is to submit that the approach road work is given to another agency in Phase-II in September 2010 at a cost of Rs 14.78 Crores is altogether different work, strengthening and black topping of which involves road from existing
Eturunagaram to Laxmipuram which leads to intake well at Gangaram is all together different nature of work and not
393
contingent to the ongoing work. The execution of this work was necessitated due to badly damaged road with sunken carriage way and formation of several pot holes and formation of ruts due to over topping with flood water during rainy season. The approach road from Eturunagaram to Laxmipuram is a R&B road. The R&B department invited tenders several times for upgrading the road with B.T. No bidders participated in tenders as it is falling in reserve forest and wild life sanctuary area. The Government after having realized the importance of the road work and opined that the executing agency of Phase I & II is well acquainted with the local problems and people, the Agency is ready to take up the work of up gradation of the road during execution of Phase-I and Phase-II works and hence awarded the work to executing work. Therefore there is no failure on the part of department as pointed out by the audit party. As per the Agreement Bond - Vol-1/2, Section-2 instruction to Bidders under "A" General, Salient features of proposed tunnel at Para 4.01 / Page-51, 4.05 / Page-52, 4.06 / Page-53 and 4.12 / Page-55 and as per para - 2 / Page-238 under Part-D, Project Parameters (Corrigendum issued). It is clearly mentioned the shape of tunnel as internal 6M diameter or 5.6 M D shaped as per approval of CE/DCO/Hyd. With a carrying capacity of 49.60 Cumecs. As per the advise of CE/CDO/Hyd. the prevision was made in the IBM for 5.6m D Shaped tunnel.
394
agency of phase II works as an additional
Though it is not specifically mentioned in the pre-bid meeting and it is clearly mentioned in tender documents that the diameter of tunnel with 6M dia or 5.60M 'D' shaped, which comes to same area. Accordingly the estimate is sanctioned with D-Shaped tunnel with 5.6 M. Hence, there is no change in scope of the work. In view of the above, the para may please be dropped. 5.10.17 Advantages of tax / duty exemption benefits:
It is not paid any thing extra over the contract price. 5.10.18 Unwarranted owning of contracting agencies burden: The Agencies of R.S.Ghanpur Distibutory system, Ashwarapally & Chittakoduru Distributory system and Tapaspally Distributory system have started the work after conclusion of the Agreements. The progress of the work achieved is 2.78% , 2.128% and 13.83 % only respectively with in the Agreement period. The only reason for short fall of the progress of above work is non handing over of required land to the Agencies. Consequently the agencies have filed the representation for grant of EOT and while submission of E.O.T proposals the Agencies have requested for grant of revised rates with the current SSR of 2008-09 due to hike in all essential commodities required for the work and also expressed their inability to carry out the balance work with agreement rates if the proposals are not considered. Subsequently the Agencies have represented the matter to the Government also besides frequent correspondence with the Department in this regard.
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Further the Agencies have also requested either to revise the estimate for the balance work with the current SSR of 2008-09 or to consider the rates for adoption of duty of 110 acres/cusec beyond the agreement period. Hence the proposals of the Agencies were submitted to the higher authorities/ Government for their perusal. In turn the Government have directed the State Level Standing Committee to examine the proposals and for further recommendation. As such the SLSC in its Minutes of meeting has directed to prepare the estimate for the balance work with the current SSR of 2008-09 which was worked out to 41.42% excess over the agreement. Apart from this the estimate cost for the balance work as per the adopted duty of 110 acres/cusec was also assessed and the same was found 18% excess over the agreement. In this connection it is to submit that the tender bid was filed by the agency to carry out the work by adopting the duty of 130 acres/cusec as per the tender schedule. But as it was decided by the Government to adopt the duty of 110acres/cusec for improving the water use efficiency, the agency was asked to submit their consent with regard to change of duty i.e from 130 acres/cusec to 110 acres/cusec for the same bid amount during finalization of tender process. agreement. Accordingly the Agency has submitted consent and the same was incorporated in the
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Here it is to be observed that the matter of consent given by the agency will apply for the agreement period only but not for the period beyond the agreement. Therefore, while examining the proposals as requested by the agency, the SLSC has considered it and in view of minimizing the financial implication on the Government it recommended to the Government that the Government may compensate the Agency at 18% for the balance work beyond the agreement period. Hence after careful examination of the recommendation of the SLSC and hence forth considering the proposals of Chief Engineer, GLIS the Government have permitted to compensate for the additional work with 18% beyond the agreement period vide Govt.Memo No.27467 / Maj.Irrg-IV-1 / 08 dt: 26.12.2008. Accordingly the same was implemented by concluding the Supplementary agreements with the Agencies to this effect. Hence the Para may please be dropped. The payment of CC Charges during trial run and subsequent operation of the Pumps is not in the scope of the executing agency. The CC Charges are being paid to the APTRANSCO by the I&CAD Department, since beginning of trial run and subsequent operation of the Pumps under Phase-I & II. Water was released to the standing crops for an extent of 6500 acres during 02/2009, while the system is under trial run. The quantum of 0.190 TMC of lifted water is released to standing crops to an extent of 6,500 Acres during 02/2009 and a quantum of 0.602 TMC is supplied to Warangal Municipal
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Corporation for providing drinking water to the people of Warangal Hanamkonda Kazipet Tri-Cities during 2008-09 from the 0.792 TMC of lifted water. During 2009-10, about 0.750 TMC of water the 1.497 TMC of lifted water. During 2010-11, total quantity of water lifted is 1.826 TMC out of which a quantity of 1.161 TMC was pumped to R.S.Ghanpur tank from Dharmasagar tank and from there to Ashwaraopally tank and finally to Chittakodur tank and about 0.719 TMC was supplied to Warangal Municipal Corporation, so to achieve the multifold benefits and to have fruitful ness of capital cost Rs. 3000 crores already spent. The O&M is entrusted to the Agency. Ashwaraopally Distributory System for the crossing of NH 202: The Right Flank Main Canal of Ashwaraopally Distributory system under Phase-II of J.Chokka Rao Devadula Lift Irrigation Scheme is crossing the National High Way NH 202 in between Km 86.00 to Km 87.00 on Hyderabad Warangal road. The chainage of Right Flank Main Canal at this point of NH crossing is Km 15.010. As per the instructions issued vide Government Memo No. 17873 / Maj.Irr.1(2) / 2005-15, Dt.26-06-2007, the construction of all the bridges across the canals falling in the jurisdiction of National High ways authority of India shall be deleted from the perview of EPC contracting agencies. The quantum of work to be
398
was supplied to
Warangal Municipal Corporation for providing drinking water from
deleted from the scope of EPC contract has to be approved by the State Level Standing Committee constituted vide G.O.Ms.No.144, Dt. 13-06-2007 & G.O.Ms.No.164, Dt. 11-072007. The consent of the contracting agency i.e., M/s Rani Infrastructure Development Ltd for deletion of the above work has been obtained. There is a provision for construction of DLR Bridge as per the IBM & Agreement. The cost of DLR Bridge is Rs 14,02,333/The State Level Standing Committee have recommended to the Government to accept the deletion of DLR Bridge with cost from the contract price of the original contractor. In view of the recommendations of the State Level Standing Committee, the Government have accorded permission to the Chief Engineer, GLIS for deletion of above DLR Bridge No.32290/ Maj.Irr.IV.1/08,Dt.01-12-2008. The Superintending Engineer(R&B), National Highways by reducing the contract value by Rs 14,02,333/- vide Govt. Memo.
Errummanzil, Hyderabad has submitted the cost particulars vide letter No.5773/T4/SENH/Hyd/ 2008-09/1456/M, Dt.04-10-2008 addressed to the Superintending Engineer, JCR-DLIS, Warangal to deposit an amount of Rs 688.75 Lakhs. The Government vide Memo.No. 35316/Maj.Irr.iv.1/08, Dt.17-01-2009 has accorded permission to to deposit the amount of Rs 688.75 Lakhs with the Executive Engineer(R&B) N.H. Division, Warangal for construction of Six Lane Road Bridge @ Km 86/970 on Hyderabad Bhupalapatnam Road under Distributory system of Ashwaraopally Reservoir under Phase-II of JCR-DLIS.
399
The Hydraulic Particulars are approved with the DLR Bridge at this location , subsequently the standards of structure is changed to 6 Lane road bridge as per the NH authorities requirements. So the 6 Lane Road is not contingent to the main work. Hence there is no unwarranted owing of burden of the contracting department. R.S.Ghanpur Distributory System for the crossing of Railway Lane: The Right Flank Main Canal with Ch. @ Km.0.782 of R.S.Ghanpur Distributory System under Phase-II of J.Chokka Rao Devadula Lift Irrigation Scheme is crossing the South Central Railway Line from Kazipet Secunderabad in between Km. 302/29-31, in between Ippaguda and Ghanpur Stations on SCKzp Section of SC, Division. A suitable Bridge has to be constructed at this location for crossing of the RFMC. The quantum of work to be deleted from the scope of EPC contract has to be approved by the State Level Standing Committee constituted vide G.O.Ms.No.144, Dt. 13-06-2007 & G.O.Ms.No.164, Dt. 11-07-2007. The consent of the contracting agency i.e., M/s V.Satya Murthy & M/s. K.Venkateshwarlu & Co., for deletion of the above work has been obtained. There is a provision for construction of Railway Bridge as per the IBM & Agreement. The cost of Railway Bridge is Rs 2,89,25,104/The State Level Standing Committee have recommended to
400
agency
to
an
extent
of
6.75
Crores
by
the
the Government to accept the deletion of Railway Bridge with cost from the contract price of the original contractor. In view of the recommendations of the State Level Standing Committee the Government have accorded permission to the Chief Engineer, GLIS for deletion reducing the contract value of above Railway Bridge by by Rs 2,89,25,104/vide
Government Memo.No.3805/ Maj.Irr.IV.1/09, Dt.02-04-2009.
The
Principal
Chief
Engineer,
South
Central
Railways,
Secunderabad vide letter No.W.75/C/@ Km.302/29-31, Dt: 1310-2009 has submitted the cost particulars addressed to the Superintending Engineer, JCR-DLIS, Warangal to deposit an amount of Rs 387.60 Lakhs. The Government vide Memo.No. 29527/Maj.Irr.IV.1/09, Dt.12-05-2010 has accorded permission to deposit the amount of Rs 387.60 Lakhs with Railway authorities towards construction of suitable Railway Bridge passing of RFMC (With canal change @ Km. 0.782) under Distributory system of R.S.Ghanpur Reservoir under Phase-II of JCR-DLIS. Hence there is no unwarranted owing of burden of the contracting agency to an extent of 0.983 Crores by the department. The total of above three 6.75+4.565 + 0.983 = 12.289 Crores. Hence there is no unwarranted owing of burden of the contracting agency to an extent of 12.289 Crores by the department. Hence the para may please be dropped.
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5.10.19 Payment Schedules Preparation and Revisions: payment schedule preparation and Revisions it is to submit that the provision against the component of 3(b) i.e., procurement, Fabrication and laying of Steel pipe line with supporting arrangements has been enhanced in the revised price breakup at 54.60% as against the 49% provided in the earlier price breakup after conclusion of the agreement. The variation involved due to the revised price breakup is 5.60%. In this connection it is to be submit that actually the agency had submitted price breakup after conclusion of agreement duly providing the provision for Hydro mechanical works at 8% which includes surge protection works as assuming that the surge pool protection works will be allied with the Hydro mechanical work. But infact the Surge pool protection works will be carried out with the pipe line works. Hence on completion of the surveying and Designs of the pipe line the agency has carried out the Geo-Technical works and after detail investigation and Designs and estimate the agency has submitted the revised payment schedule based on the actual cost of the individual sub component of pipe line and Hydro mechanical works assessing the same at 56% and 1% respectively. The agency has taken the 7% from the component of 8% against the Hydro Mechanical works as approved earlier by leaving 1% for the same out of 8%. But the Engineer in Chief has approved the revised price
402
break up as per clause No.14.1,14.3,14.4,14.6 contract price and payment of agreement volume II ( 2/6) duly considering the factual by bifurcating the provisions at 1.8% for Hydro mechanical works and 54.60% for procurement, fabrication and Laying of steel pipe line and the reaming 0.60% added into operation and maintenance for 15 years.
Hence the Question of front loading of amounts to the agency does not arises. The rates of steel plates for 14mm and 12mm were adopted while preparation of the estimate as per the circular Memo of Board of Chief Engineers Communicated from time to time. The remarks of the audit party that the Department paying more than 70% for supply of pipes on it own estimated value is not correct. The payments are made approved payment schedule by the competent authority. 5.10.20 Failure to protect financial interest of the Government:
The estimate of the Lift Schemes prepared based on the prevailing taxes and duties and tenders were called for. The fact of exemption of Central Excise Duty by the Government of India was not known to the department at that time. The bids were received from the agencies would have quoted based on prevailing rates of duties. In regard to exemption of service tax, the works of Phase-I & II and Package No. I, II and III of phase-III Agreements concluded prior to issue of Circular pertaining to exemption of Service Tax in respect of Dam, Tunnel, Canal for Irrigation Projects. For the other Packages in Phase-III the same are provided under non-contract items. Consequent to issue of service tax notification, the agency availed the exemption of tax as per the circulars issued from time to time and as per the 403
agreement conditions.
5.11 Chitravathi Balancing Reservoir (CBR) Right Canal (Lingala Canal) and Lift Irrigation Scheme 5.11.1 Project Formulation and Basic Information The basic information furnished is correct. 5.11.2 Assessment of availability of dependable water resources. Kadapa District is drought prone area with meager
irrigation facilities. Gandikota CBR Lift Irrigation scheme is taken up to lift 7 TMC of water to irrigate ayacut under Lingala canal and the ayacut under existing Chitravati reservoir. So far 80% of the CBR Right canal works are completed & 80% of the Gandikota CBR LIS also completed.
404
5.11.3 Feasibility studies project report.
and
preparation of detailed
In the EPC system detailed investigation is done by the executing agency. In the absence of detailed investigation by the department and in view of the urgency felt by the Govt. for grounding the works, detail project report was not prepared. As the scheme is taken up with flood water no feasibility report is prepared.
405
5.11.4 Project approvals. Investment clearances is not taken as the project is taken up with State funds. No R&R is involved and so no displacement of people. CWC clearance not obtained because the scheme is based on flood water of Krishna River.
5.11.5 Administrative approvals for the projects 1. The size of the main canal is increased due to increase in the discharge of the canal. Also additional link canal to PBC of length 1.375 Km with a cross regulator has been proposed. 2. The cost per acre of the distributory net work for 25000 acres was taken as Rs. 800/- in the original proposal. But rate was revised and Rs. 11,600/- of cost per acre was considered as per the norms. 3. The need to supply water to up land ayacut necessitated provision of lifts and additional structures. All these changes were incorporated in the subsequent estimate and therefore the value of the work increased. The Govt. have accorded revised administrative approved for 148 Cr.
406
5.11.6 Adhocism in taking up project The scope of the work had undergone changes from the originally planned ayacut of 25000 acres to 59400 acres. A part of the ayacut is at higher level of canal bed. So lifts have to be provided. The frequent changes made in the project have to be seen in the context of the need to provide water to upland areas and to provide drinking water to areas which could never hope to get irrigation facilities.
5.11.7 Non availability confirmed sources of water. The scheme envisages drawl of 1.99 TMC of water from CBR which is a result of savings due to lining of PBC. Further the proposed Gandikota-CBR Lift scheme supplies 7.5 TMC of water from Gandikota reservoir to CBR.
407
5.11.8 Tendering: The information furnished is correct.
5.11.9 Status of the project The total agreement amount of this package is Rs. 336.20 Crores. So far Rs. 266.06 Crores of work is completed i.e., 79%. and the balance work is under progress. 5.11.10 Land Acquisition Position Out of total requirement of 2856.36 acres, 1923.36 acres of land is acquired. Acquisition of the balance land is under various Stages.
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5.11.11 burden:
Unwarranted
owing
of
contracting
agencies
The audit by over site included Rs.26.74 Cr worth of work which was towards formation of new tanks and improvement of existing tanks. These works related to Phase-II The value of additional works amounts to Rs.20.315 Cr. only. 1) 2) for These works related to easening of canal sides Provision of additional pumps due to additional lifts irrigating upland areas.
These two works are not contingent to the original work. They are new works.
409
5.12 Gandikota schedules CBR Lift Irrigation Scheme 5.11.12Payment - preparation and revisions. 5.12.1 Project Formulation and Basic Information In the initial payment schedule of tender document under It has been indicated in the report. The project been miscellaneous item a provision of 18.72% of total has Rs.149 Crtaken were up with for 6 packages covering lift lift irrigation schemes. The latest made construction of six six irrigation systems and expenditure this project is Rs1358.18 Cr.the corrigendum the constructing on power generation plant. In provision for construction of power generation plant was deleted 5.12.2 Preparation of detailed project report. from the revised payment schedule. The percentages in the payment items were broughtwater down to Theschedule scheme for is miscellaneous formulated mainly to supply 8.02% against The revision made before the existing ayacut original of PBR 18.72%. canal system & CBR is right canal. Hence closure of tender and after concluding the agreement. preparation of DPR is not takenup for this scheme.
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5.12.3 Project approvals The project is taken up based on surplus flood water and with State funds. Hence obtaining CWC clearance and approval from planning commission is not mandatory. There is no forest land involved. There is no displacement of people.
5.12.4 Tendering Kirloskar Brothers Ltd, is a leading manufacturer of electrical pumps in the country. The other leading manufacturer of electrical pumps i.e. BHEL did not show interest in tendering the projects.
5.12.5 Status of the Project The executing agencies slow down the works due to delay in payment of work bills. Payments are made upto date and the works are in full swing now. 5.12.6 Payment schedules -preparation and revisions For supply of EM/HM equipments it was originally proposed to make payment up to 65% of the cost. However out of 65% when payment is to be made a 7% of the amount is retained as security amount so the agency get a payment upto 50% of the cost of the equipment as this payment is very low the percentage
411
is increased from 55 to 85 for HM parts and 55 to 70 for HM projects.
5.13 Modernization and Micro Irrigation of Pulivendula Branch Canal: 5.13.1 Project Formulation and Basic Information: It has been indicated in the report. 5.13.2 Adhocism in taking up projects The Pulivendula branch canal was taken up to utilize 6.4 TMC of water for providing irrigation facilities to 60000 acres in Kadapa and Ananthapur districts. Modernization of the PBC system is taken up under
Jalayagnam to stabilize the ayacut a cost of 118 Cr. in 2006. Govt. decided to create new ayacut of 36900 acres through Micro irrigation at a cost of 156 Cr. Further it was decided in November-2009 to provide Micro irrigation systems at a cost of 360 Cr. During the execution in May-2008 the carrying capacity of the system was increased by 400 cusecs. The various changes made in the project during execution have been the result of representations from people and public representatives.
412
5.13.4 Tendering 5.13.3 Project Approvals Even though wide publicity was given calling tenders on eAs this is an existing system under TBP HLC system feasibility procurement platform, single bidder participated in tenders. studies preparation of DPR obtaining in principle from CWC are not mandatory. Micro irrigation works are of special nature. There are not many companies to supply Micro irrigation equipments required for large area under these packages. Jain irrigation is the leading supplier of Micro irrigation equipment and based on its record and capacity, the firm bagged the tenders 5.13.5 Status of the project Due to various reasons such as delay in Land Acquisition, non availability of water and power for testing & commissioning of electro-mechanical equipment etc. the project could not be completed in time. It is programmed to complete the work on this scheme by 2012.
413
5.14 Somasila Project: 5.14.1 Project Formulation and Basic Information: 5.14.3.2. Clearance from Central Water Commission: The expansion of the Project based on surplus flood water Somasila Project In the audit is it is stated that all the clearances flows Srisailam Reservoir. The surplus water of Srisailam exceptfrom Forest Clearances were obtained for Somasila project. The Reservoir will be received is through the TGP Canal system status of forest clearance detailed in existing the the para 5.14.3.1. and will Benefit be flownCost to Kundu River and flown to Penna River. 5.14.2 Ratio SOMASILA PROJECT: As the project has been taken up with the State Govt. funds, The benefit cost ratio of the project is out to 1.56. Central Water Commission approval is worked not mandatory.
5.14.3 Project Approvals:
5.14.3.1 Forest Clearance: The issue of forest clearance is now before Honble Supreme Court and once clearance is given, the works will be taken up.
414
5.14.4 Tendering: The works were entrusted to the agencies as shown in the table. 5.14.5 Status of the Project Out of 5 packages, 3 packages 96, 32, 11 pertaining to G Kondapa Naidu canal are in progress and are programmed to be completed by end of 2013.
415
5.14.6 Quality assurance The minutes of the meetings are not recorded, though the meetings have been conducted by the Superintending Engineer. 5.15 Somasila Swarnamukhi Link Canal 5.15.1 Project Formulation and Basic Information
Irrigation potential envisaged: Create a new ayacut of 23266 acres Stabilize 87734 acres of 316 tanks in Nellore and Chittoor districts Proposes to utilize 4.45 TMC of Pennar flood water Provides for drinking water facilities to 2.5 lakh population with 0.2 TMC Takes off at KM 12.52 of Somasila-Kandaleru Flood flow canal and runs for a length of 100.06 KM Administrative Sanction Expenditure Land Required : Rs. 95.82crore 5736 acres and acquired : 1686 acres Rs. 437.42crore
Source of water Other benefits
Components
5.15.2 Project approvals The project is based on surplus flood waters and it is being constructed with State Government funds.
416
5.15.3 Invitation of tenders without Technical Sanctions It is a fact that tenders were invited before technical sanctions were given. This procedural lapse is due to heavy rush of work under the Jalayagnam programme.
5.15.4 Entrustment of Works The works were entrusted to the agencies as shown in the table. 5.15.5 Status of the project Works in Package No.17 are under progress. Work in Package No.15 is held up because forest land is yet to be handed over. Work in Package No.16 is held up because of delay in handing over of Forest land & Wild Life Sanctuary clearance. 5.15.5.1 Land Acquisition Due to resistance from the public on the land compensation, there is delay in acquisition of land. Action is being taken to acquire the balance land and to complete the project by June2014. In respect of Package No.16, Rs.9.34 Cr. was paid to agency for the works executed in patta lands. The agency in order not to keep the men and machinery idle and with the consent of the land owners proceeded with the work before acquisition of land officially. 5.15.6 Quality Assurance The minutes of the meetings are not recorded, though the meetings have been conducted by the Superintending Engineer.
417
5.15.7 Payment schedules Through rate was arrived at by taking the sub component wise cost. The amount of Rs.52.35 Cr. is divided by IBM quantity of 56,40,200 cubic mts and the rate is worked out to Rs.92.82 per cubic mt. Payment is made adopting the above rate for the quantity executed.
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5.16 Telugu Ganga Project (N. T. Rama Rao Telugu Ganga Project) 5.16 Project Formulation and Basic Information:
Irrigation Contemplated Source of water 5.75 lakh acres 29 TMC of Krishna flood water from Velugodu and Sri Pothuluri Veerabrahmendraswamy Reservoir 30 TMC of Penna flood water from Kandaleru balancing reservoir An inter-state project to supply 15 TMC drinking water to Chennai Drinking water to enroute villages Two hydel power projects at Velugodu and Kandaleru 408 KM Canal Rs. 637 crore (1983) Revised: Rs. 4432 crore (March 2007) Rs. 3661.69 crore (March 2012) Required:71488 acres and acquired:70520 acres
Other benefits
Components Administrative Sanction Expenditure Land Required :
5.16.2 Benefit Cost Ratio The revised BCR is 3.05. If the entire area under irrigation and if the area under tanks is localized, the benefit cost ratio is likely to go up.
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5.16.3 Overlap of Ayacut The increase in ayacut is due to increase in area under subsidiary reservoir -I and subsidiary reservoir II, and not under SPVBR reservoir. Payment for formation of distributory network is regulated as per the actual ayacut realized. In the agreement there is a clause for reduction in ayacut upto 20%. The payment for formation of distributory network will be made according to the ayacut created only on acre basis. 5.16.4 Project approvals Clearance for major portion of forest land upto an extent of 10,371.4 hectares was obtained in 1988. Ministry of environment & Forests GOI gave stage I clearance for additional requirement 313.63 Ha. The TGP scheme is taken up with A.P State funds and hence clearance from the planning commission is not obtained. 5.16.4.1 Forest Clearance All the conditions for stage II clearances i.e. amounts relating to NPU and CA were paid and stage II clearance is awaited.
5.16.4.2 Delays in fixing contract
IBMs/Finalization of bids and
In the EPC mode of procurement, finalization of the Internal Bench Mark is a critical activity. The IBM was finalized during tender process. Giving technical sanction after calling for tenders occurred because of huge number of works and the urgency
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pressed to complete the works. 5.16.4.3 Entrustment of Works The Package Nos 9,10,11,39 & 40 are in the jurisdiction of Chief Engineer, NTR Telugu Ganga Project, Srikalahasthi and the agreement value and name of the agency given in the audit report are correct.
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5.16.5 Status of the project As per the DPR, the 2 TMC of water given to Siddapuram tank is not a confirmed allocation and it has to be drawn during flood season from August to November. The contractor executed lining works from 23 Km to 42.266Km and stopped the work due to continuous demand for water in the head reaches for various purposes such as drinking water and irrigation. In view of good rains and surplus water availability, decisions to release water in khariff as well as Rabi were taken making the available working season very short. In view of the above reason the contractor could not do the work and it was pre-closed. Though new tenders have been called for the work, there is no response. There is no fault on the part of the contractor. 5.16.5.1 Payment schedules Preparation and Revision In respect of electro mechanical works, out of the amount to be released to the agency against supply of equipment, 7% is retained as security amount. The net amount the agency was getting reduced. Based on the request of the suppliers, the Govt. increased the percentage of payment to the supplier against supply of equipment. This principle was followed in all packages having EM/HM. Components.
5.16.5.2 Payment in price variations In the initial agreements, the operation of price variation provision when there was reduction in the market prices was not included. In agreements concluded later, the operation of price
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adjustment provision when prices get reduced is insisted.
5.17 Jyothirao Phule Dummugudem Nagarjunasagar TailPond 5.17.1 Profile and project formulation
5.17.2 Planning No Comments 5.17.3 Preparation of Detailed Project Report Jyothi Rao Pule DummugudemNagarjuna Sagar Sujala
Sravanthi (Dummugudem-Nagarjuna Sagar Project Tail Pond Link Canal ) is aimed to supplement water to Nagarjuna Sagar Project for stabilizing the existing command of 22.13 Lakh acres.
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Supplementing
water
to
entire
Nagarjuna
Sagar
Project
Command by following way: (i) 4,000 Cusec to 21 st Branch main canal of Nagarjuna Sagar Left Bankn Canal in the Khammam District. Brach Canal of of Nagarjuna (ii) 1,000 Cusecs to Muktayala Sagar Left Bankn Canal in Nalgonda District. (iii) Remaining 17,039 Cusecs will be diverted to Nagarjuna Sagar Tail Pond and ultimately to the main Nagarjuna Sagar Reservoier for stabilizing the entire Ayacut under NSP by using entire existing canal network, until sufficient inflows start reaching NSP from Krishna River.
Nagarjuna Sagar Project command would be affected due to construction of Almatti Dam and other reservoier in Krishna Basin on upstream of Nagarjuna Sagar Project. Project has been launched after the following studies: (i) Simulation studies were conducted by Prof. Subhash
Chander of IIT Delhi to asses the impact of storage at + 519.600 m in Almatti Reservoir in Karnataka state on the flows to Andhra Pradesh, choosing the water years 1984-85, i.e., prior to the construction of Almatti Dam from the time series data available, which exhibit a sequence having wet, dry and dependable years. The study is made taking the monthly utilization; the upstream projects as per Bachawat Award assuming that the upper states have fully utilized their share. The study indicates that Nagarjuna Sagar would not receive waters in the month of June & July,
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while the flows available during August also would not meet the requirements of Nagarjuna Sagar fully. Even during the dependable year like 1984-85, Nagarjuna Sagar command would be deprived of necessary irrigation supplies, during the month of July & August if all the upstream reservoirs have waters only up to MDDL in the beginning of the year. During drought years like 1986-87, 87-88, the situation would be much worse, since the availability of water would be less than 100.00 TMC only, against the allotted 281.00 TMC for the project which includes 17.00 TMC evaporation losses. The impact studies of Almatti and other upstream reservoirs onflows to Andhra Pradesh indicate that except in very good years the Nagarjuna Sagar reservoir would not attain F.R.L in the months of June, July & August. (ii) The Government of Andhra Pradesh also constituted the expert committees for studying diversion of water from Godavari to Nagarjuna Sagar Project in the year 2003. The expert committee submitted feasibility report to Government during September 2004 with the following proposals. For diverting of 165 TMC of water from river Godavari at Dummugudem to Nagarjuna Sagar Project. A discharge of 24,000 Cusecs of water through Dummugudem Ngarjuna Sagar Project Tail Pond Link Canal by 6 pumping stages in 80 days. The WAPCOS submitted 1st DPR of DNSPTPLC for diversion of 165 TMC of Godavari water.
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The Chief Engineer submitted the report to the Government on proposed alignment which passes through the Command Area of NSP, Singareni colories and to avoid number of crossings of NSP Canals. (iii) The Government directed the Chief Engineer to study the alignment proposal to avoid existing ayacut of NSP. The Chief Engineer proposed new alignment from Paloncha to Halia without disturbing existing Nagajuna Sagar ayacut. The alignment proposed parallel to Nagarjuna Sagar Left Main Canal Left side on higher level. The Expert committee constituted by the Government to examine the revised DPR and the feasibility of cost economics for the lifting 165 TMC of water. The committee examined the proposal and recommended the revised estimate for Rs. 19521.42 Crores to Government. And also suggested one alternate proposal from Haliya River to lift the water directly to NSP Reservoir by proposing one pump house at Haliya River and this proposal may be examined and investigated independently without linking up with present proposal i.e., Diversion of 165 TMC from Dummugudem to Tail Pond of NSP. Hence, the current proposal is viable. Jyothi Rao Pule Dummugudem Nagarjuna Sagar Sujala Sravanthi (Dummugudem- Nagarjuna Sagar Project Tail Pond Link Canal ) was administratively approved by the Andhra Pradesh Government Rs. 8,930.08 Crores vide G.O. No. 125 Dated; 16.05.2007 and subsequently revised for aministrative approval for Rs. 19,521.42 Crores vide
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G.O.Ms.No.22, Dated : 06.02.2009 due to
change of
alignment of canal so as to avoid the area of Singareni Calories, ayacut of NSP and ayacut of Rajiv Sagar LIS and due to adoption of current SSR. The project works are taken up in 10 Packages, these packages were let out to agencies by EPC system.
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5.17.4 Clearance from Central Water Commission JPDNSS is proposed to divert 165 TMC of flood water. Preliminary report submitted. The CWC raised certain comments from 3 Directorates. Out of 3 Directorates one Directorate is Hydrology. In Hydrology the basic remark is regarding consistency checks and actual utilization of down stream of SRSP for purpose of arriving the yield for the diversion purpose. The Hydrology study have been done on the hydrological of Godavari basin prepared by M/s WAPCOS March 2004 this particular project dependent on the several issues connected with existing projects as well as further projects as such the diversion potential dependent on the net source that are going to be available on daily basis. In order to arrive at the daily flows the observed daily flows have to be modified in such a way that the net daily flows reflect the actual scenario of flows that would be taken place due to further projects also. While ensuring the flows required for down stream projects Polavaram, in order to come yet develop daily series to arrive at a optimum pumping capacity of the pumps to considerable time to give reply to CWC. 5.17.5 Project Approvals
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Feasibility study: In principle consent from CWC to pre p are DPR: Detailed Project Report: Environmental clearance from Ministry of Environment & Fo r ests: Forest Clea r ance from M inistry of Environment & Fo r ests:
Submitted to CWC Comments received from 3 Directorates.Replies submitted to CWC DPR prepared by WAPCOS under scruitiny Submitted to MoEF.It is felt that DNSP has not involved any submersion. Hence the clearance may be accorded at state level. Proposal submitted to PCCF,Forest Dept.GoAP,Hyderabad.Remarks are being attended.
Rehabilitation and Resettlements (R&R) from NO R&R involved. Ministry of Tribal Affairs: Investment c learance from Plann ing DPR will be submitted after the receipt of InCommission: Principle clearance.
5.17.6 Power supply arrangements to lift irrigation schemes JPDNSS: The WAPCOs estimated and submitted power requirement in the DPR as 1565.4 MW for 6 pump houses of JPDNSS. The actual power requirement calculated by I & CAD Department for 6 pump houses is 1135.87 MW, for which estimate is prepared and approved by the IBM committee. Information regarding number of pumps to be operating and month wise requirement will be submitted after approval design of pumps and motors. 5.17.7 Tendering
This scheme is divided into ten packages and all packages were awarded on EPC open system to the agencies. As observed by the Audit there was not much competition in JPDNSS. Two (Package No.1 and 4) out of the ten packages were entrusted to single bidders. In seven packages the competition was low with
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only two bids in each there. respect of package No.3
Only three bids were received in though tenders were invited by
publishing in two papers, one English and Telugu languages, the NIT is loaded on the e-procumbent platform for wide publicity. But there was very little response to these tenders due to the following reasons All the partners of the consortium are jointly and severally responsible for the entire work 15 years of operation and maintenance of the package works. This kind of condition of 15 years of operation and maintenance has been incorporated in irrigation tenders for first time India. This has been kept keeping in view of requirements of the department and assistance of the EPC agencies for operation and maintenance for longer periods for effective operation and maintenance of spares. This condition have put many companies which are other wise qualified to be away from the bidding as they are again jointly and severally responsible for the scheme for such a long time. Because of the above reasons only few companies were there in the race Thus BHEL and few other foreign companies have taken the issue very seriously They have done lot of due diligence (Verified complete credentials like technical and financial standing) of the Civil Engineering contracting companies and selected only few of them for participation in the tender. The Civil Engineering Companies upon their study and evaluation of different works and to limit their participation to the extent of their capability and expertise have chosen only some of the packages for bidding. Further these companies have formed
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different consortium with the available companies for motors and pumps for participation in different packages. As the works are large and complicated in nature, the firms have formed as JVs/Consortiums among themselves to enhance their capabilities and to meet the eligibility conditions. restriction to competition among these bidders. There is no All the tenders
have been evaluated and the bid capacities as per criterion have been checked and all the qualified contractors have satisfied it. In the Only process various companies bidders have and various lowest contracting offered arrangements and bided for the tenders. completely eligible price consortium groups are only selected for award of the works. The Internal Bench mark value for Package No. 3/2007 was finalized by the committee for Rs. 140.02 Crores with S.S.R. 2006-07 on 11.10.2007. Consequent after receipt of tenders up to 18.10.2007 the technical bids were finalized and price bids were recommended to the Government. The High Power Committee meeting held on 03.03.2008 has recommended for acceptance of the lowest tenderer M/S. A. Krishna Reddy, Contractor, Hyderabad vide Govt. Memo No. 33826/ Major. Irr.lll/A2/2007-3 Dt. 28.03.2008. But the agency has not come forward to conclude the Agreement as the bid validity was expired on 28.01.2008 and agency has not extended its validity. There after tenders were invited again but there is no response. As such tenders were invited vide tender notice No.6/2008-09
Dated. 25.08.2008 duly recasting the estimate with current S.S.R 2008-09 and incorporating shortfalls occured in the earlier estimate. The same was placed before IBM committee on 20.09.2008 for approval. As per the advise of the IBM committee
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the matter was reported to the Government. As per the instructions of Government, vide Govt. Memo. 28069/Maj.Irr.lll/A2/2008-1 Dated 22.10.2008, the estimate was placed before the Advisory Committee on 11.11.2008. The Advisory Committee meeting was held on 11.11.2008 has informed the Chief Engineer to modify the following items in the estimate. 1. Earth Work Excavation: Earth work excavation quantities classified are to be as per ERM data and is to be certified by the Superintending Engineer. 2. Earth work Excavation for Embankment: 75 % of the excavated soil up to SDR from other bays is to be provided with 2 Kms cross conveyance. The balance embankment quantity is to convey from borrow areas with a lead of 1 Km considering the cost of soils with 2 mts depth of excavation. 3. C.C.Lining: Excavated hard rock quantity may be used for C.C. lining deleting the L.A and L.I on labour component of materials. 4. C.M & C.D WORKS: 8 Nos of CD works, 4 Nos of Canal Crossings and 7 Nos of Road bridges were agreed by the committee. Accordingly, the estimate was modified and placed before the IBM Committee on 19.11.2008. The committee has approved the value of IBM for Rs. 252.72 Crores for the package No. 3/2007. The hike due to adoption of current SSR 2008-09 is Rs.43.02 crores as the balance increase is due to inclusion of omitted structures, embankment quantities, VAT and Service Tax etc.
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Hence, the draft audit para may be dropped for inclusion. 5.17.8 Status of the Project The committee was constituted to study the feasibility of project. The committee has submitted the report to Government, the decision is pending at Government. 5.17.9 Front end payments The JPDNSS scheme has been taken up by the Government with an intension to complete it in its totality. The project envisages various components such as canals, tunnels, structures, lift systems, within each package works and also all packages are interlinked as the Designs and execution of works were taken up simultaneously. So all the investigation works of all the packages are to be carried out in tandem, the Government have decided to freeze the investigation of the scheme and designs and parameters before taking up the actual execution. In order to complete this task, it is found very difficult to take up the investigation and designs of all components of packages and the scheme at one time the provisions made in the original payment items. In this connection it is to be mentioned that while approving the IBM for these projects only 0.4.3% to 0.50% of cost of the components has been provided for investigation. Hence it is schedule have found to be insufficient without supplementation from the components of execution of these
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found inevitable to revise the payment schedules, stage wise for each component of work such as canals, tunnels, structures, lift systems, reservoir and distributor network as each of the above components in turn involve investigation and designs apart from their actual execution. It is to be mentioned the component weight age is kept unaltered as shown in the original payment schedule appended in Annexure-II. Even as per CWC guide lines August 2000, vide para 18.6.1, the amounts required against each of the above items will vary from project to project and no general yard stick can be laid down. However, it has been the experience that the overall provision surveys) under A-Preliminaries alone is (i.e., 1 for investigation to and 3%.
The above provision of 1% to 3% is only towards investigation and survey of canals, reservoirs and distributory system. Further in all Public Sector enterprises like ONGC, NTPC and normally in central PSUs the provision for investigation and designs is being kept as 5% of the cost of works. Where as in the PCLI Scheme the total provision kept in each package is around 0.43% to 0.5% only. All these tenders are similar to the tenders invited by the I&CAD Department where in pumping and piping works are involved to large extant. The ONGC have stipulated, in their payment schedule in the bidding documents itself, that the Design Engineering shall have 5% of the quoted value. This is possible only if they have The copies of the considered in their estimation of the works.
part of bidding documents of ONGC works are also enclosed for

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ready reference. The JPDNSS Scheme involves large scale lifting of water and very huge pumping stations, large tunnels which are big in size and length, underground pump houses, surge analysis, piping designs, geological investigations, mapping, rock analysis etc., These items involve experts from many fields and many laboratories and time also. As the scale of the packages is very large, these laboratories and time also. As the scale of the As packages is very large, these packages involve huge pumps and motors which only few international manufactures are doing. these motors and pumps and other and electro mechanical items are to be installed in hostile conditions underground the designs of these parts are crucial and difficult in nature and time consuming. In JPDNSS Scheme the agencies apart from the above, have to do, Land plan schedules, core drilling and geo investigations for tunnels, design and prototype testing of pumps, Sump Model studies, inspection of motors, testing of pumps and motors in the manufacturing units which are located in foreign countries. Considering all the above the provision for investigation and designs should be around 5% of working items, instead only a provision of maximum 0.5% is only loaded in the IBM. Even the AP Genco is charging 1% of the cost of equipment for only vetting the designs of these equipments. Assuming an average provision of 5% towards Investigation and Designs is provided for JPDNSS The value world have been (5/100 X 17201.5=Rs. 860.05
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Crores) Actual total provision for these items in JPDNSS IMs = Rs. 86.00 Crores only Hence there is savings to Government = 860.05-86= Rs. 774.05 Crores. Considering the agencies requirements only, the payments schedule is changed and the provisions to towards these items has been increased to 2 to 3.5% basing on the requirements of each package duly reducing the provisions of connected items for facilitating the requirements of survey, investigation, designs, prototype testing and other allied items which are part and parcel of the preliminary works of the scheme and the contracted amounts have not been changed. This is done to impress upon the agencies the importance of these activities and for getting it done elaborately and exhaustively by the agencies at their own cost without loading it in the IBM to the extant. Hence, the draft audit para may be dropped for inclusion. 5.18 Veligonda Project (Poola Subbiah Veligonda Project) 5.18.1 Project Formulation and Basic Information No comments. 5.18.2 Preparation of Detailed Project Report The DPR of the project was prepared in 1994 and sent to CWC. The CWC returned the DPR with some remarks. The CWC wants preparation of integrated working tables taking into consideration all the existing and contemplated projects on river Krishna from
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Srisailam reservoir. As the Project is being taken up with flood waters of Krishna river obtaining the clearance of CWC is not mandatory. 5.18.3 Benefit Cost Ratio The benefit cost ratio of the project as per the current cost works out to 1.46. The benefit cost ratio as per CWC norms for drought prone areas should be greater than 1.0. The project is being constructed in drought prone areas of Prakasham, Nellore and Cuddapah districts. The high cost of the project may be justified. 5.18.4 Forest clearance Stage I forest clearance has already been obtained. The required compensatory afforestation land has been identified and will be handed over to the Forest Department. under process. Stage II approval is
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5.18.5 Administrative approvals for the project In order to take up the works in a phased manner, Government have given administrative approval in stages. 5.18.6 Adhocism in taking up the projects A plan was prepared to take up the works in two stages along with time lines for completing the works. executed according to the needs of stage I. Head works are Later on Stage II However, the
works were taken up simultaneously. The foundation of head works was designed for the ultimate stage. elevation of the dam was limited to Stage I capacity and later on it was extended to Stage II level. The sudden decision to take up Stage II works was taken considering various representations from the people and public representatives. Originally, single tunnel was planned with a diameter of 7.0 meters. This could have been increased to 11.34 meters to draw the ultimate discharge. However as the flood days are limited at that level, it is proposed to have two tunnels one with a diameter of 7.0 meters and another with a diameter of 9.2 meters so that water can be drawn in more than 30 flood days and the acreage planned for irrigation in stage II can also be met. The same agency could not have done the work of two tunnels with different diameters. To encourage competition, the second tunnel work was treated as new work and tenders were called. 5.18.7 Project approvals Forest clearance is under process. When the project is taken up with flood water and State Government funds, clearance from CWC and Planning Commission are not mandatory.
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5.18.8 Inflation of estimates In preparation of IBM, some assumptions were made in the absence of practical data so that the department would have a rough idea of cost of work. However, IBM was uploaded only after the bid submission closing date. No bidder has taken any undue advantage due to the assumptions made in the IBM estimate.
5.18.9 Excess Loading of Earth work quantity As this is EPC work, the payment has to be made based on completion of parameters without looking into quantity. The quantity saved in stage-I work cannot be deducted in supplemental work as it is covered by a fresh agreement.
5.18.11 In correct bid evaluations At the time of preparing the IBM estimate, the department officers were not aware that customs & excise duty exemptions are available. 5.18.12 Delay in fixing IBMs/ contract Package No.6 was a very complex work. Both stage-I and StageII works were to be synchronized. The committees took time to finalize the IBM values. That is why, the tender opening date was postponed. Finalization of bids and
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5.18.13 Status of the project Stage I forest clearance is obtained. Necessary amount for forest clearance has been deposited to forest department. CA lands for an extent of 3054 acres are acquired. The stageII forest clearance will be obtained at one go but not acre by acre. Tunnel boring was held up for 16 months due to encountering of loose soil. The problem has been over come and the work is at brisk progress.
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5.18.14 Rehabilitation & Resettlement Impounding of water in Nallamala Sagar Reservoir is possible only after completion of tunnels which requires another 3 years time from now. Hence the department has not accelerated the works of R&R colonies and unless at least one of the Tunnels is finished, no water can be impounded and hence there will not be any inundation of villages in the foreshore area for another 2 to 3 years. However, comprehensive R&R plan is being proposed to take up the R&R works so that all the R&R colonies are completed with necessary infrastructure to accommodate the displaced families. At present 3 sites for R&R colonies were acquired and tenders were called for to take up infrastructure facilities. 5.18.15 Assessing requirement 1) Originally, the dimensions of the canal (Bed width, FSD etc.) were proposed with lined section. 2) In technical specifications of the agreement, the canal section was shown as unlined canal erroneously by over sight. 3) To draw the required water, the bed width of the canal was increased to 12.8 mts. This resulted in supplemental agreement costing Rs.13.76 Cr 5.18.16 Subletting The subcontractor who got 50% of the work in tunnel-I work possessed the required experience and based on his eligibility only, the Superintending Engineer approved the subletting. The action of the Superintending Engineer has been ratified by the
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Govt. 5.18.17 Providing insurance coverage to the works The observation of Audit is valuable and it will be taken into account in all future agreements.
5.19 Yellampally Project (Sripadasagar Yellampally Project) 5.19.1 Project Formulation and Basic Information No comment
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5.19.2 Preparation of Detailed Project Report The work of preparation of D.P.R was awarded to M/s Aarvee Associates Hyderabad in Dec 2004.The Agency conducted investigation and prepared a draft D.P.R which is submitted to CWC. The main purpose of awarding work of preparation of DPR is to get clearances from CWC. Hence the contention of audit that the award of DPR for an amount of Rs 1.5 Crores is defeating the purpose is incorrect as they have obtained clearances from almost all directorates except one directorate and D.P.R can be placed before next TAC meeting. Insufficient water for the contemplated ayacut: The audit has opined that the water that is being used for developing the ayacut under this project is insufficient. Central water commission has established 60 TMC of water availability at the Project location. Thus there is no dearth of water at source. The assumption of the audit that only 15000 acres of ayacut can be irrigated with 1 TMC of water is only a thumb rule. The water requirement depends on the rainfall data of the region, general terrain of the command area, crop water requirement based on the type of crops/ horticulture being cultivated etc. The actual water requirement for the suggested crops as per crop water requirement using modified pen man method works out to 12 TMC only. Statement enclosed. Hence the finding of the audit that the water is insufficient for the project with a thumb rule is incorrect and may please be reconciled. The micro irrigation system requires infrastructure facilities, motivation of ryots towards that system and collective adoption
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of the system and the creation of these facilities may take considerable time. Hence conventional field channels are adopted, as the system can not be kept idle till such time. After implementation of micro irrigation system, these field channels will serve as water carrier channel to the sumps constructed in the micro irrigation system. 5.19.3 Identification of ayacut Administrative approval was accorded by Government for Rs 376.25 Crores for developing canal net work distributory system for 2 lakh acres under Sripada Yellampally project. This work has been taken up initially for 1, 65,000 acres under three packages and technical sanction has been accorded accordingly. The package for the balance ayacut will be prepared after making field studies. The opinion of the audit that the Package II could not be taken up due to non finalization of the ayacut is not correct. Actually tenders were called for Package-II and there is no response from the agencies to the tenders even for the third call. The audit has pointed that the 13500 acres of ayacut under Mulavagu tank was later included in one of the packages of Pranahita chevella Lift Irrigation scheme and that a comparison of the ayacut of Sripada Yellampally Project and Pranahita chevella Lift Irrigation scheme revealed that an ayacut in 30 villages under four mandals were over lapping . The Sripada Yellampally Project was grounded in the year 2005 and the ayacut under this project has been finalized after conducting a detailed investigation and the same was submitted to the CWC well before even contemplation of PCLIS. However the matter will be examined and finally it will be ensured that no ayacut is left
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over nor any ayacut is overlapped under both the schemes.
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5.19.4 Project Approvals Replies already covered in the para 3.3.1 and 3.8 5.19.5 Tendering No comments 5.19.6 Status of the Project No comments 5.19.7 Rehabilitation and resettlement In Adilabad District the infrastructure facilities such as providing of Roads and Drainages, School Buildings, Electrical Works, Sanitary etc., are being provided for Gudipet, Namnur and Kondapally villages at rehabilitation centres. Further, for the villages Gudipet, Namnur and Kondapally the House Site Pattas for plots were issued by the concerned Revenue authorities, House structure payments are also made for the existing houses in the above 3 villages. Construction of houses is not the responsibility of the Department in R&R process. The PDF themselves have to construct their houses in the plots provided. The payments for the 9 villages are made to an extent of 90% towards R&R benefits. The Joint Collector of the District is Project Administrator for Rehabilitation and resettlement. The status of R&R works as furnished by the SDC, Mancherial in-charge of the project is appended. Thus assessing the progress of Rehabilitation works by mere number of houses constructed as opined by the audit is not correct. Hence the para may be dropped.
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5.19.8 Assessing and drafting of requirements In the EPC system the bidder has to make his own assessment of the site independently. The corrigendum removing the lengths in the bid documents was issued well before the submission of bids. In such cases the bidders will be more careful and cautious in the item and knows that he cannot be prompted by what is tentatively given earlier. Hence the presumption that a scope is given to quote the rates as per lengths given is not correct. The audit has failed to understand that the bidder is not a casual piece rate contractor but a firm backed up by design office technical and legal consultants. The EPC bidder will always makes a thorough study and not take chances with all the expertise he possesses. Thus initial inclusion of a clause and subsequent removal may be unwarranted, but never definitely did not and can result in undue benefit what so ever in as much as all
Corrigendums are part of tender process only. Moreover, after concluding the agreement the agency has to do detailed surveys, Designs and get it approved from the competent authority and execute it accordingly. In this process there may be increase in certain components of the work and decrease in certain components of work and the agency is bound to complete the whole work within the price quoted by him. For example in Manthani Lift Irrigation scheme 10 Nos. of CM & CD works on Pressure main were considered in the IBM, where as after finalization of designs the CM & CD works have been increased to 30 Nos and the agency has to execute all of them within the quoted price only without any excess payment. Hence the excess or less is not applicable and undue benefit does
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not arise. The IBM Committee examined the issue duly working out the savings departmentally also for Kaddem LIS and Manthani LIS, apart from the offer given by the agency. The change in specification of pressure main from mild steel pipes to Glass Reinforced Plastic pipes is accepted by Government and details of savings as per own assessment on the basis of prevailing SSRs is furnished. 5.19.9 Coordination Issues Generally the execution of gates will start after completion of dams and barrages up to crest level. Hence the tenders were sequenced in that manner. The then agency of barrage work has executed certain portion of work after placing the secondary embedded parts by the gates agency before suspending the work in July 2010 even though there was much front available for continuing the work. Hence the reasons quoted by the then agency for barrage work for suspending the work are not true. The withdrawn portion of the balance work is entrusted to M/s SEW Infrastructure Limited and agreement concluded in the month of May 2011. The new agency for barrage work could not do much progress until November 2011 due to monsoon season from June to October 2011. However the work is now in full swing. The barrage and the gates works are nearing completion. Hence the contention of the audit that the non cooperation between the agencies or suspension of default agency has delayed the work is hypothetical.
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5.19.10 Risk or Advantages of variations: The agency M/S SPML has quoted two bids one with 2.x1800
MM dia for Rs.119,91,99,999-00 (Rs. 119.92 Cr) as per the tender requirements and second bid with 1x2500 MM dia pipe line for Rs.98.92 Crores in accordance with Clause 25 of instructions to bidders as below: The bidder may submit alternative proposals without changing the scope the basic parameters of the project as specified in the special conditions of the bid documents. In case a bidder submits alternative proposals they will be evaluated with reference to the technical specifications as specified in the Volume III A & B and only if the alternative proposals are found to be in conformity with the scope and basic parameters of the project and then the bidder will be declared to be eligible for the opening of the financial bid subject to satisfying above conditions of eligibility. The Bidder must submit the details related to alternative options of pumps as indicated under the special condition of contract (Volume-II Part-B) including prices for such alternative options. As there are 2 bids satisfying the basic parameters of lift scheme, the High power committee has approved the alternative bid with 1x2500 MM dia pipeline for Rs.98.92 Crores. Accordingly, the agreement is concluded for alternative bids with 1x2500MM dia M.S pipe line for Rs.98.92 Crores which is 29.34% less over the IBM value Rs.136.87 Crores. The location of pump house is finalized at +149.00 Mtrs ground level near Murmur (V) duly avoiding submergence under Sripada Yellampally Barrage with 2.10 Km. approach channel by
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Chief Engineer/ CDO, Hyderabad. under: 1. Approach Channel 2. Pressure main 3. Exit Channel
Thus the length of Water The details are as
conductor system works out to 14.04 Kms. : 2.10 KM : 11.65 KM : 0.29 KM Total : 14.04 KM
The length of the water conductor system is working out to 14.04 Km very nearer to the length specified. The agency has offered to complete the work with Rs.98.92 Crores with savings of Rs.37.95 Crores, duly considering all the above aspects of length, diameter of the pipe and topography etc., 5.19.11 Insurance cover to the works The Department has lodged insurance claim proposal with the insurance company and the insurance company sought for certain particulars which have been furnished to them to settle the claim. Further the work of scour filling is in progress and nearing completion ( i.e. 80% work is completed). 5.19.12 Unwarranted owning of contracting agencies burden The audit has taken objection for depositing an amount of Rs 155.06 cr with APTRANSCO for transmission lines and transformers as the work is deemed to be done by Agency under EPC contract system. But as per the scope of the agreement, the agency is bound to supply only 33/11 KV transformers only and supply of 132 KV transformers and transmission lines are not in
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the scope of the contract nor there is any additional provision made in the estimates for such high volume substations. The issue was well explained to the Government and the Government after careful examination issued Memo No.3105/Major Irrig. III(1)/2007-4 dt.3.12.2007 for depositing funds with AP Transco. 5.19.13 Payment Schedules Preparation and Revisions The Manthani and Kaddem lift irrigation schemes are different from other conventional civil packages and involves high expenditure on survey, investigation, designs and model studies for pressure mains, pumps and motors and other ElectroMechanical works, surge analysis, experts opinion etc.,. Further the agencies have reported that they were forced to invest more money on these items due to scanty availability of experts in the above specialized fields. Further in respect of packages of Manthani and Kaddem Lift Irrigation schemes the Payment schedules vide Annexures of the agreement contains the break up of all components and its price in shape of percentage of total cost of contract amount. The note mentioned in the annexures payment schedules states those the above schedule is subjected to clause No.41.2.4 and 42 of conditions of contract. The payment schedule is liable for modification after finalizing the cost of various components while fixing the IBM values. The payment schedule furnished above is indicative. As per above notes the payment schedule may be liable for modification. Keeping in view of the various items involved in the surveys, investigation and vast number of designs and drawings for the entire work, it is opined that the cost provided for the
451
investigation and design work, made in the original payment schedules is not sufficient. This is also felt by the audit that proper and adequate priority is not accorded to the critical activity of survey and Investigation (Para 4.3.4). The agency has submitted a detailed realistic sub-break up for investigation, designs, and drawings for a tune of 3.5% of contract amount. However, it is only a sub-break up done within the over all provision for the components which is kept unchanged. This revised break up of components of payment schedule was approved by the competent authority the Chief Engineer, Project (Irrigation), LMD Colony, Karimnagar vide CE/ Projects/ KMR/ TS/ T5/ F40/ 2234/A, dt:19.03.2009. The payments are made as per above approved payment schedules. Hence the contention of the audit that the advance payments to an extent of Rs.3.16 Crores and 3.76 Crores are made is not correct. 5.20 Bhupathipalem Reservoir Project 5.20.1 Project Formulation and Basic Information No Comments 5.20.2 Adhocism in taking up projects As per the project proposal approved by the CWC in December 2000, the ayacut contemplated under the project was 13,391 Acs with an estimated cost of Rs.47.00 crores. Subsequently, as per the demand from local ryots, who are also S.C and S.T population, it was planned to revise the scope of the project to 23.086 Acs with same storage capacity. Accordingly, proposals were submitted to Government and administrative approval was accorded (October 2003) by GO AP for Rs.76.77
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crores. But after the field investigation deducting local high patches the net ayacut under the project found to be 14028 Acs (5677 Ha) only. But as per the agreement conditions (Vol.1, PartD, Basic project parameters, Part-E, profile of Bhupathipalem Reservoir Project canals and Part-F, Price bid (Schedule-A) and break up for Schedule-A, Distributories and field channels) the contractor is bound to execute a canal network to irrigate an ayacut of 23086 Acs. Hence, the proportionate amount of Rs.4,81,28,207/- is proposed to recover from the contractor towards net shortage of ayacut ie., 9058 Acs (or) 3665.72 Ha. 5.20.3 Project Approvals No Comments 5.20.4 Tendering Generally the activities of land acquisition process,
implementation of R&R package, and execution of the project will be taken up simultaneously. But in this case operationalization of the R&R package took a lot of time because consultative process started initially with strong protest due to political motivation. Due to the continuous obstruction caused, no work could be started for almost 11 months out of the agreement period of 18 months. Land Acquisition was also delayed abnormally. In view of the above reasons which are not attributable to the agency, no work could be allowed during the agreement period of completion and in the process all materials and labour cost have increased abnormally. Further the project is located in agency area. Under
453
circumstances
explained
above
the
Government
accorded the tender
permission vide GO Ms.No.161,dt.2.8.08 to reduce the time of tender in a non-EPC work, to 10 per cent. 5.20.5 Status of the Project The work has been completed 5.20.6 Variations in the scope of work It is covered under para 5.20.2
discount of 20.77 per cent offered by the contracting agency at
5.21 Kanathanapally Sujala Sravanthi (P.V.Narasimha Rao Kanthanapally Sujala Sravanthi Project) 5.21.1 Project Formulation and Basic Information
Irrigation potential envisaged:
Stabilization of ayacut of SRSP (3.1 lakh acres) and SRSP stage II (4.4 lakh acres) Total 7.5 lakh acres Lifting of 50 of TMC of water from Godavari river and dropping it in Kakatiya canal for stabilization of ayacut i) Construction of barrage at Kanthanapally on river Godavari Spillway Hydro power block Tunnels, lifts and Canals
Source of water
Components
ii) iii) iv)
Administrative Sanction Expenditure
Rs. 10409 crore (February 2009) Rs. 3.06 crore
Lifts
Nos; 3 Height: 249 meters 454
Power requirement Power generation
878 MW Contemplated: 280 MW
5.21.3 Adhocism in taking up projects The SRSP stage II ayacut was designed duly considering the water availability at SRSP dam and got approved. 5.21.2 Preparation of Detailed Project Report The SRSP stage II is currently under execution. In the initial Stages to have the fruitfulness Expenditure The inincurred principle clearance by to Central Water already on the Project, is the accorded water is given the fields to Commission on the 02-03-12 for is preparing the the extent as CWC and when Canal work completed. DueDPR to as per CWCof Guidelines. preparation of DPR is in progress to availability plenty ofThe water the farmers are habituated Irrigate Paddy Crops. Actually the Project is designed for ID crops. Due to change of Cropping Pattern, there is short fall of water to the Stage-II. It is not the hasty decision but there is rationale behind executing the Stage-II of SRSP that to irrigate upland areas of parched lands of Nalgonda District. The mindset of farmers has to be changed to go for ID Crops, and it takes time to educate the farmers. The capacity of the SRSP reservoir is also drastically reduced due to deposition of silt. All these
455
factors together contributed for a short fall of availability of water to SRSP Project system by about 60 TMC. Therefore the SRSP stage I&II 5.21.4 Approvals designed ayacut beyond has been the experiencing Basically this project was Km.224.00 envisaged to stabilize 7,50,000 regular short fallstage of water. acres of SRSP I&II ayacut which is experiencing regular Based on the above, the Govt. is decided to take up this project short fall of water from SRSP project. for stabilization of 7,50,000 Acres of SRSP Stage-I&II Approval ayacut. for The Government have accorded Administrative Rs.10409 Crores in 16-02-2009. After according the administrative approval, there was a discussion with AP GENCO regarding the possibility of the power generation at barrage site. The AP GENCO has opined that there is a possibility of producing 450 MW of power with available water head at Barrage site. The department invited tenders for construction of Barrage Across River Godavari in May 2009. The APGENCO has confirmed the possibility of 450 MW power generation on 11-11-2009. Meanwhile orders for after having of accorded dam the administrative hydro electric approval , the Govt. vide GOMS No 21 dated construction 11-03-2010 issued
including
components in River Godavari by the I&CADD department stating APGENCO will extend their co operation in technical and supervisory aspects. The Government of Andhra Pradesh directed the APGENCO to prepare the from DPR CEA, for power Delhi. generation and the obtaining survey, clearances New Accordingly
456
investigation and preparation of
DPR
was
taken
up
by
the
APGENCO and a meeting was conducted on 07-01-2011 for discussing the possibility of power generation at Barrage site. In this meeting it is suggested by APGENCO that, due to reverse gradient in the river bed of Godavari, it is possible to generate 280MW of power instead of 450MW as suggested earlier by them on dated 11-11-2009. Meanwhile the draft TORs for EIA & EMP was approved by expert appraisal committee of MOEF, New Delhi in its 51st meeting held on 15-07-2011.The EIA & EMP study is in progress. In principle clearance is accorded by CWC New Delhi for preparation of DPR on 02-03-2012. Inviting tenders for construction of Barrage, obtaining clearances from CWC, MoEF is in progress. Therefore this project cannot be considered as non starter as opined by audit party.
457
5.22 Sri Komaram Bheem Project 5.22.1 Project Formulation and Basic Information
39500 acres under left canal and 6000 acres under right canal-Total 45500 acres Formerly known as Peddavagu Project, a Medium Irrigation Project. 8 TMC of water Peddavagu river Revised Rs.450.14 Crore (October 2009) (i)Formation of Earth dam (ii)Construction of spillway Components (iii) Two head regulators (iv) Two main canals-Left(65 Kms) and Right(9 Km) Expenditure Submergence Land Rs.377.31 Crore (June-2012) Villages :6 Families affected : 1893 Required : 8221.79 Acres and Land acquired: 6834.90 Acres.
Irrigation Potential Envisaged Source of water Administrative Sanction
458
5.22.2 Project Approvals No comment. 5.22.3 Forest Clearance The project involves reserve forest to an extent of 436.52 acres in head works/submergence, 129.97 acres for canals and 30.98 acres for surplus course. The project was cleared by the CWC in its 73rd meeting held on 31.05.2000 CWC vide Lr.No.16/27/2000-PA(N)/100648,dt.12.06.2000.Even before receipt of CWC clearance, the issue of obtaining forest clearance for head works was taken up by the Chief Engineer, Investigation (now Chief Engineer, Hydrology) from 1999 itself i.e., well before grounding the works. A Copy of Government Memo No.48384/Irr.VII(A2)/991,dated.02.02.2000 alloting 188.07 Ha of forest land from land bank of Mahaboobnagar district is enclosed. By the time the project works were grounded, the forest clearance was in advance stage of processing. In fact the clearance was received by G.O.I, MOEF vide Lr No.8-88/2001-Forest (Conservation) Act 1980, dated 02.12.2006. Thus the involvement of reserve forest was not a hindrance for execution of project works. The main canal passes through reserve forest beyond km 34.00 out of the total length of 65 km. In fact as of now, the canal is completed upto km 34.00 and part IP of 14,000 acres has been created. Had the project been postponed for want of forest clearance for main canal beyond km 34.00,the ryots would have been denied early irrigation benefits to an extent of 14,000 acres. As of now, stage-I clearance for surplus course is received
459
and stage-II clearance is in process. With regard to the main canal, the proposals have been sent to MOEF, New Delhi and is being actively perused.
5.22.4 Administrative approvals for the project Sri Komaram Bheem project was one of the projects taken up under Jalayagnam programme under EPC system as a matter of policy by the Government. The tenders for all the projects under Jalayagnam were invited in tune with the Government policy. The administrative approval was accorded in the same month itself in which the tenders were invited.
5.22.5 Invitation of tenders without Technical Sanctions As per the EPC system the tenders were invited based on IBM value which was arrived as per line estimates. As such the technical sanction could not be accorded before invitation of tenders as the designs & drawings are to be prepared & got approved from the competent authority by the agency as per EPC system.
460
5.22.6 Entrustment of Works As the scope of work in respect of Medium Irrigation projects is compact comprising of head works and canal system limited to a maximum extent of 10,000 hectares, the IBM estimate was prepared as a single entity for the entire project. The tenders were invited accordingly as per the IBM estimate arrived
5.22.7 Status of the Project As of now, despite the hindrance cause due to land acquisition, R&R and forest clearance, part IP of 14,000 acres has been created. The balance IP is programmed for creation by Khariff, 2013.
5.22.8 Land Acquisition At present, the land acquisition is involved only in the tail end of main canal and distributory system. Infact the head works and canal system for a length of 34 km out of the total length of 65 km has been completed. The land acquisition involves various steps from preparation of LP schedules, the publication of DN&DD. Any funds available with the Special Deputy Collector would be kept as deposits till the above process is complete. Which does not imply that the pace of the project was slowed down.
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5.23 Sriramsagar Project Stage II 5.23.1 Project Formulation and Basic Information
Sri Rama Sagar Project (SRSP) Stage-II is an extension of SRSP Stage-I i.e. from Km 284.00 to Km 346.00 to create an ayacut of 4.40 Lakhs Ac in the draught prone areas of Warangal, Khammam and Nalgonda Districts. Source of Water : 24.405 TMC from River Godavari Components : Excavation of 3 Branch Canals with distributories Mylaram and Bayyanna Vagu Balancing Reservoir and an aqueduct at Akeru River. Administrative Sanction : Original Rs.830.75 Crores Revised : Rs.1043.14 Crores Expenditure : Rs.830.65 Crores upto 5/2012. Land Required : 20,763 Ac Land acquired : 17,813 Ac Balance lands to be acquired : 2,950 Ac
462
5.23.2 Overlap of ayacut
While conducting detailed survey on package-58, it is noticed that, an ayacut of 18,790 Acres is covered under N.S.P. lift irrigation scheme and other developments of villages. Resulting net ayacut under EPC package -58 is arrived 32,077 Acres as against 50,867 Acres proposed under package-58 of DBM-71. The proportionate amount of Rs.16,84,75,274/@ Rs.8,966.22/Acre has been reduced from the scope of agreement of package-58 in lieu of reduced ayacut.
5.23.3 Project Approvals The SRSP Stage-II project approvals are as follows. 1. C.W.C. clearance at TAC (64th meeting) held on 3.4.1996 for Rs.697.70 Crores. 2. Environmental clearance (85th meeting) vide letter No.J12011/23/2002-IA-1, dt: 14.5.2003 from Ministry of Environment & Forests, Government of India. 3. R&R clearance from MOTA vide Lr.No.20011/3/2003-CP&R Dt: 25.10.2004. 4. CWC clearance of TAC for modified report Lr.No.16/27/2006-PA(N)/454-89, Dt:14.3.2006 vide
5. Investment clearance for Rs.1043.14 Cr from Planning Commission vide Lr.No.213/A/2003/WR, Dt: 23.3.2006. 5.23.4 Entrustment of Works The Govt. has issued the following G.Os to adopt the rates of relevant SSR rates for the works executed beyond the Agreement period as per the Agencies plea. (i)G.O Rt No: 77 I&CAD ( PW Maj.Irr.III) Dept., Dt: 29-01-2010
463
for the work of Earth Work Excavation & Forming Embankment including construction of structures from Km 34.400 to 40.00 of DBM-60. (ii)G.O Rt No: 75 I&CAD ( PW Maj.Irr.III) Dept., Dt: 29-01-2010 for the work of Earth Work Excavation & Forming Embankment including construction of structures from Km 40.00 to 45.00 of DBM-60. (iii)G.O Rt No: 76 I&CAD ( PW Maj.Irr.III) Dept., Dt: 29-01-2010 for the work of Earth Work Excavation & Forming Embankment including construction of structures from Km 45.00 to 50.00 of DBM-60. According to the above Government G.Os, the Chief Engineer, GLIS has accorded revised estimates. Accordingly the payment has been made to the agency. 5.23.5 Status of the Project Due to land acquisition problems, the progress of work
hampered. However subsequently the L.A. issues were resolved and the progress of different packages are as follows. Package-52: Lining of Kakatiya Main Canal from 284.00 to
346.00 was completed (except 3 Kms i.e. Km 288.00 to 289..00, Km 289.00 to 290.00 & Km 332.00 to 333.00) Package-53: Now the part of work is with drawn from the main agency under 60(C) clause to APSS and awarded to other agency to maintain the progress of work. Package -54: The land acquisition could not be completed as the ryots are vehemently opposing for exclaiming canal execution.
464
Package -55:
Now the part of work is with drawn from the
main agency under 60(C) clause to APSS and awarded to other agency to maintain the progress of work. Package -56: The works are completed Package -57: The works are completed Package -58: The works are completed
5.23.6 Land Acquisition

The distributory DBM-61 (Non-EPC work) takes off at Km 313.082 of Kakatiya Main Canal and the length of the distributory is 5 Km. The ayacut under this distributory is 3,841 Ac and the work is in progress. The total land acquired under this distributory is 144 Ac against 146 Ac (there is a balance of 2 Ac) DBM-65 : The distributory DBM-65 (Non-EPC work) The ayacut under this distributory is
takes off @ Km 323.207 of Kakatiya Main Canal and the length of the distributory is 4 Km. 1297 Ac. already acquired. DBM-71 : The distributory DBM-71 (Non-EPC works) from 70% of work is completed and total land of 31 Ac
Km 0.00 to 56.00 excavation and including construction of structures work were completed and Km 56.00 to Km 68.45 was not excavated. The distributory DBM-71 (Non-EPC Work), the total land from Km 56.00 to 68.450 acquired and tenders are called for and which are under process. 5.23.7 Variations in the scope of the work
Name of the Work: SRSP-II E.W.E. & F.E. and construction of

465
CM & CD works including investigation, Designing & Estimation of DBM-69 Main, Minors & F.Cs near velishala, Thirumalagiri (M), Nalgonda Dist. (Package No.55). The above EPC Package No.55 work was letout to M/s.AKRCOASTAL (JV) Hyderabad vide L.S.A.B.No.67/2004-05, dt:11.3.2005 for Rs.72.99 Crores. area of Nalgonda Dist. During progress of work, while preparing combined command area map duly verifying with the revenue records, an additional ayacut of 11,856 Acres of drought prone area was found feasible which can be irrigated under DBM-69. were submitted to the Government. Accordingly, proposals The Government vide The Main intension of the
package is to irrigate an ayacut of 56,100 Ac in drought prone
G.O.Ms.No.508 Dt:30.6.2008 has accorded approval to take up additional ayacut of 11,856 Acres to be created at an additional estimated cost of Rs.1132.24 Lakhs (11.32 Cr.). Now, the total ayacut works out to 67,956 Acres (56,100+11856 = 67956 Acres). Therefore, the total value of the contract is Rs.8431.24 Lakhs (7299 + 1132.24 = 8431.24 Lakhs).
466
5.24 Thotapally Barrage Project and Gajapathinagaram Branch Canal 5.24.1 Project Formulation and Basic Information No observations on the Audit 5.24.2 Preparation of Detailed Project Report Thotapalli Barrage Project Package-I Thotapalli Barrage Project comprising of earth dam across Nagavali river and right main canal was taken up to irrigate an ayacut of 1,84,000 acres including stabilization ayacut of 64,000 acres. Subsequently after the Thotapalli Barrage Project works have been taken up, the feasibility of providing water to 15,000 acres through Gajapathinagaram Branch Canal was studied and the Government of Andhra Pradesh have taken up this scheme on account of the fact that Thotapalli Barrage Project, Gajapathinagaram Branch canal the work can be taken up work being only an extension of the Right Main Canal of independently of the Thotapalli Barrage Project works. The States of Andhra Pradesh and Odisha have concluded an interstate agreement based on which 16.00 TM cft of water of Nagavali was allocated to Andhra Pradesh. In order to harness its rightful share of water, the GoAP have taken up Thotapalli Barrage Project. This project was approved by the Central Water Commission in 2003. The water required for the contemplated ayacut of 15,000 acres under Gajapathinagaram Branch Canal can be met from the rightful share of 16.00 TMcft of Andhra Pradesh without violating the interstate agreement between the two states.
467
Further it is proposed to convey water to the contemplated ayacut of 15,000 acres through a branch canal of RMC of Thotapalli Barrage Project for which the approval of CWC have already given for the Gajapathinagaram Branch Canal may not be required. Due to the aforesaid reasons, it may not be necessary to submit the revised project proposals to CWC. Thotapalli Barrage Project Package-II The Thotapalli Barrage Project scheme was cleared by Central Water Commission in 81st TAC meeting on 04.08.2003. Since the Gajapathinagaram Branch Canal is a part and parcel of Thotapalli Barrage Project as it takes off at Km97.700 of Right main canal. Hence no separate clearance was obtained from CWC for Gajapathinagaram Branch Canal. The water required for the contemplated ayacut of 15000Acres under Gajapathinagaram Branch Canal can be met from the rightful share of 16.00TMC of Andhra Pradesh without violating the interstate agreement between the two states. 5.24.3 Project Approvals All the approvals were accorded by the competent authority. 5.24.4 Entrustment of Works The works were entrusted to the Agencies as shown in the table.
468
5.24.5 Status of the Project Thotapalli Barrage Project Package-I Thotapalli Barrage Project works have been taken up in three non EPC works which have been completed but with respect to the EPC Packages, the progress has been hampered severely due to land acquisition and R&R problems. The severe agitations by the PAFs for speedy implementation of R&R in respect of Package I works has severely dented the progress of these works resulting in a series of time extensions. Finally the contracting agency of Package I vacated its men and machinery from the site in July 2010. At this juncture, in order to complete the package works the department had to resort to invoking clause 60( C) of PS to APDSS on the agency due to which works to a tune of Rs. 12.19 Cr have been deleted from the agency and entrusted to four other agencies. In this regard, it is to state that the observation of the PAG that no action has been taken by the department is incorrect and further, any action on the agency has to be taken as per the codes /rules as prescribed in the APDSS and invoking clause 60( C) is the preliminary action taken on the agency. Further as per clause 60(c), in case if a portion of work is deleted under clause 60 (c) and the work so deleted is completed by other contractor/ contractors and if it involves any extra cost, the difference in cost shall be recovered from the original agency provided that such recovery shall not exceed 5% of the total furnished contract amount. It is evident that the departmental action in invoking clause 60 (c) on the original agency has been detrimental to the interests of the agency only and has safeguarded the public interest at large.
469
Therefore the observation of PAG that only few small works have been deleted is baseless and intends to belittle the action taken by the department. After deleting the works under clause 60(c), several notices have been issued to the agency to resume the balance work but they failed to evoke a positive response from the original agency due to which work of value Rs. 24.69 Cr was again deleted under clause 60 (c)and tenders have been called for this work. The updated cost of the balance work with SSR 2010-11 workedout to Rs. 60.32 Crores and one agency M/s RSR Infra Pvt Ltd & M/s PVSRSN Enterprises Pvt Ltd (JV) have quoted an amount of Rs.60.26 Cr. The qualified agency was requested to conclude the agreement but the agency did not conclude the agreement due to which the EMD of the agency of Rs. 25.00 lakhs was forfeited. to the Therefore the contention of PAG that loss occurred
exchequer to an extent of Rs. 35.64 Cr is incorrect since the work has not been entrusted to the agency for Rs. 60.26 Cr and hence purported loss of Rs. 35.64 Cr is only fictitious. The above departmental action did not yield the desired result and therefore the department has invoked clause 61, of PS to APDSS as further action present tender process stage. Further as per the conditions laid down under clause 61 of PS to APDSS once the Government has invoked clause 61, if the expenditure incurred on the deleted work exceeds its original value, the extra amount shall be paid by the contractor to the
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on the agency and deleted all the for this deleted work is in advance
balance work of value Rs. 32.65 Cr from the agency and at
Government.
Therefore in view of the above explained reasons the action taken by the department in invoking either clause 60 (c ) or clause 61 as per codal rules on the original agency is justified and has safeguarded the public interest. With regard to the argument that the Government had lost both ends of EPC system of contracting i.e., (1) single source of responsibility and (2) fixed contract price in the above cases, it is to state that the original contract price (Agreement value) concluded with the agency has not changed since part of the original work has been deleted and any additional expenditure likely to be incurred on the work will be recovered from the original agency as explained above. Hence the original agency has not been spared of its responsibility. Thotapalli Barrage Project Package-II The Government have accorded administrative approval for Rs. 70.47 crores to take up the above work in the reference 1st cited. In the mean while the new SSR is communicated. The estimate was recasted with SSR of 2008-09 due to increase in for cost of material, men and machinery rates and The Government have accorded revised administrative approval Rs. 76.9988 crores in the reference 2nd cited. estimate was technically sanctioned for Rs. 74.5044 Crores vide SE office sanction No. 11CE / 2008-09 .
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The IBM value has been finalized by the I.B.M committee on 23.09.2009 for Rs. 56,58,16,393 /- consisting part I amount Rs. 52,72,07,255 and part II amount Rs. 3,86,09,138 duly adopting the revised data with the SSR of 2009-10. The Superintending Engineer has submitted the detailed estimate for Rs. 70.20 Crores with the modifications suggested by the IBM committee and also adopting the revised data communicated by the Engineer-in-Chief and the estimate was technically sanctioned for Rs. 64.21 40 Crores vide SE office sanction No.4/2009-10 duly superseding estimate earlier office sanction No. 11/2008-09. Tenders were called for by the Superintending Engineer, T.T.P.R Circle, Vizianagaram vide SEs Tender Notice No. cited in the 3rd reference and of tenders as there was no fixing the last date of receipt 30.09.2009 up to 5.00 PM and opening of response for this tender call. The the sanctioned for Rs. 74.5044 Crores vide SE
technical bid on 01.10.2009 and price bid on 07-10-2009. But Superintending Engineer, T.T.P.R Circle, Vizianagaram has again called for tenders(2nd call ) vide his tender Notice No. 3/2008-09 Dt. 20.10.09 and fixing the last date of receipt of tenders as 21.12.2009 and opening of technical bid on 22.12.2009 and opening of price bid on 31.12.2009.
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Accordingly the pre bid meeting was held in the office of the Chief Engineer, North Coast, Visakhapatnam on 11.12.2009. No agency has turned out to participate in the pre-bid meeting . In response to the above (2nd tender call) only one bidder M/s MAX Infratech India Private Limited Hyderabad The Superintending has participated in the online e-Procurement market place before the due date i.e., on 21.12.2009. Engineer, has reported that the tenderer M/s MAX Infratech India Private Limited Hyderabad has submitted original documents including original bank guarantee on 24.12.2009, even though submit the condition is incorporated in the NIT to documents at the time of concluding kept in original
agreement in terms of G.O Ms No. 174 Dt. 01.09.2008. The original documents received from the tenderer are circle office, as record. The single tender of M/s MAX InfraTech India private Limited Hyderabad has been evaluated by the Superintending Engineer, T.T.P.R Circle, Vizianagarm as per the tender conditions and the tenderer of M/s MAX InfraTech India Private Limited Hyderabad is qualified in the technical bid stage and hence recommended for price bid evaluation. The price bid is opened by the Superintending Engineer, T.T.P.R Circle, Vizianagaram on 31.12.2009 at 11.00 AM and the position of the tender is as follows. As seen from the above the single Tenderer M/s MAX Infratech India Private Limited, Hyderabad has quoted Rs. 59,38, 24,199 /- @(+) 4.95 % excess over the I.B.M Value.
473
The Superintending Engineer, T.T.P.R Circle, Vizianagaram has recommended the same for acceptance of the single tender arrived for Rs. 59,38,24,199/- @ 4.95% excess, over the IBM value of Rs. 56,59,16,393/- in favour of M/s MAX Infratech India Private Limited, Hyderabad packages of Thotapalli Barrage Project . In , G.O.Ms No. 144, Dt. 13.06.2007 Instructions were issued by the Government to submit the tender evaluation proposals to the State Level for Standing Committee. of the The SLSC tender and documents along with required particulars are here with submitted recommendations. The committee of Secretaries recommended to consider award of the work to M/s Max Infratech India Pvt Ltd, Hyderabad at their quoted price of Rs. 59,38, 24,199 at 4.95% excess over the IBM value in the meeting held on 01.04.2010 . Consequently the Superintending Engineer, T.T.P.R Circle, Vizianagaram has addressed to M/s UAN MAX Infra limited , Hyderabad to concluding agreement vide his letter No.SE/TTPRC/ VAZM/ DB /ATO/T-108/732M/Dt. 24.12.2010. In the mean while the bidder has applied for change of name from MAX Infratech India Pvt Ltd, Hyderabad after correspondence with the Government Of India Ministry of corporate affairs, Registrar of companies , Andhra Pradesh has issued fresh certificate of incorporation consequent upon change of name. examination stating that the work is to be completed concurrently with the two ongoing
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The observations of the PAG that the firm, instead of completion of investigation for the entire length of 25.00 Km, was insisting for land intended by it in the reach 0.00 Km to 8.800 Km in which HPs were approved is not reasonable since the agency after investigation will submit the LP schedules in the reach for which investigation is completed and the same would be requisitioned to time for the revenue of authorities, without wasting completion
investigation for the entire reach and there by work can be started in the reach where land is acquired. Accordingly, HPs were approved. Investigation and land acquisition can be done simultaneously there by minimizing wastage of time.
5.24.6 Assessing and Drafting of contracting conditions Thotapally Barrage Project: As per APFC Vol.I Article 160, the estimates sanctions to be treated as confidential and should not be communicated on any account tenderer. As per P.S.13 of APDSS, in respect of EPC the Estimate Contract Value excluding reimbursable items put to tender value shall be the basis for comparison of tenders. to any contractor, piece worker or prospective
475
Further should
it be
is
to
submit or
that
as
per by the
Government concerned EPC
Memo.No.12907/Reforms 2006-1/ Dt:08.05.2006, the IBM disclosed announced Superintending Engineer/Chief Engineer under
methodology of tendering w.e.f 08/05/2006 and also in Government Memo. No.5217/Reforms/06/ Dt:23.02.2006 in regard to Agreements the clarifications are issued vide item No.5 as follows due to not having uniform formats/Standard formats of Bid document. After post facto approval to the uniform standard format of agreement for EPC contracts is accorded by the Government any inconsistencies in the already concluded agreements may be regularized by the competent authorities by concluding necessary supplemental agreements. But where as in this case, the tender process and concluding the agreement was prior to year 2006 for which IBM is a confidential document. The inconsistencies in the Agreement were also appraised to Government vide Chief engineer, North Coast, Visakhapatnam letter No. CE/NC/VSP/DEE.4/AE.2/ TBP.EPC.II/ Vol.7/Dt:12.08.2007.
Further the clauses 27 of special conditions and clause 5 of other special conditions of agreement contravenes one another for which addendum was issued is appropriate as per Government Memo. No.5217/Reforms/06/ Dt:23.02.2006. Based on the Government Memo No. 5127/Reforms/06/Dt. 23.02.2006 the clause 27 and clause 5 of the agreement reveals that the bid cost does not include cost of Railway lines and the cost towards Railway lines is to be borne by the department. The contravention was rectified.
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The replies to the audit objection under section A during the month of 11/2007 were already submitted by the concerned Executive Engineer. But the same was not dropped so far. However, the matter will be brought to the notice of the SLSC constituted by the Government of Andhra Pradesh vide G.O.Ms No. 1441, I&CAD (Reforms) Department, Dt. 13.06.2007 for clarification for effecting recovery of Rs. 1.78 Cr., provided in the IBM Value. The action will be taken soon after getting clarification from S.L.S.C / Govt., which is empowered to give decisions on such issues.
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5.24.7 Unwarranted owning of contractings burden Thotapally Barrage Project Package II The clause 27 of Agreement No.5/2004-05 of PA&SE/TTPRC/VZM reveals as follows:The works of the canal system is likely to have several crossings for National Highway, State Highway, Other Roads, Railway Lines, HPCL Oil pipelines, GAIL gas pipelines, Water pipelines etc., and as such necessary letter to grant the permission for crossing those premises shall be issued to the respective authorities by the Engineer-in-Charge. However the Contractors will have to keep the follow-up and obtain timely clearance from the concerned authorities.Costs of those crossing are included in the Bid except the crossings pertaining to railway lines. The Government in Memo. No.17873/Major.Irr.1(2)/2006-15, Dt:26.06.2007 (Copy enclosed) has issued instructions as Deletion of execution of bridge across canal system on National Highway Authority of India from the purview of EPC contract. Further it was stated that the quantum of work to be deleted from the scope of the EPC contract is to be assessed by the State Level Standing Committee Constituted vide G.O.Ms.No.144, I&CAD (Reforms) Department, Dt:13.06.2007 and submit the proposals to the Government for approval of effecting the deletion from the EPC Agency and it should be ensured that the contracting agency also give their concurrence for the deletion without giving scope for raising further disputes. In Package-II there are two NHAI Crossings. One on
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Srikakulam Branch Canal and another on Vizianagaram Branch Canal. It is further ensured that the contracting agencies also give their consent for deletion without giving scope for raising further disputes. 1. The construction of all bridges across the canals falling
in the Jurisdiction of National Highway Authority of India shall be deleted from the purview of the EPC contracting agency. 2. The construction of these deleted portion of bridges will
be taken up by the NHAI and the necessary amounts will be deposited by the I & CAD Department in favour of NHAI. As per the Government Memo stated above the process of deletion of construction of all bridges across canals falling in the jurisdiction of NHAI Authority from the purview of contracting agency is in progress. After approval of the above proposal, the amount towards NHAI crossings will be deducted from the agreement value of the agency. The proposals of deletion of the two bridges from the purview of EPC Contracting agency will be processed. After receiving approval from the concerned authorities, the cost of the two bridges will be deleted from the purview of the EPC agency. 5.25 Vamsadhara Project Stage II (Boddepalli Rajagopala Rao Vamsadhara Project Stage II) 5.25.1 Project Formulation and Basic Information No Comments
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5.25.2 Project Approvals Vamsadhara Project: As per Inter State agreement of 1962 A.P. is entitled to utilse 50% share of Vamsadhara waters.Accordingly the proposals for In-Principle Consent from the Central Water Commission were submitted to Chief Engineer, PAO(s), Central Water Commission, New Delhi vide letter dated 25.8.2005. The replies for remarks communicated by the Central Water Commission in this regard were submitted during 02/2006. Subsequently, in compliance to the decisions taken during the interstate meeting held on 24.04.2006, the Detailed Project Report for Vamsadhara Project Phase-II of Stage-II was prepared and submitted to the Central Water Commission and Government of Orissa in anticipation of In-Principle Consent of CWC on the proposals of Vamsadhara Project Phase-II of Stage-II. The remarks of CWC on DPR are being attended to. The proposals for obtaining clearance from Ministry of Tribal Affairs regarding the implementation of R&R were submitted to the Government. However, the Government have remarked to revise the R&R cost proposals in the light of G.O.Ms. No. 76, dated 13.4.2006. Since the R&R is being taken up phase-wise, the Project authorities have requested the Government to recommend the R&R proposals to MOTA. The clearance from MOTA is being pursued to.
480
5.25.3 InterState issues Vamsadhara Project: It is submitted that due to inordinate and prolonged noncooperative attitude of Orissa Government in giving their concurrence to the Neradi Barrage and due to wasteful joining of flood waters into the sea depriving the State of Andhra Pradesh to draw their judicious share of water due to which the famine areas were made to suffer, the Government of Andhra Pradesh has decided to execute Vamsadhara Project Phase-II of Stage-II which in no-way affect the State of Orissa. The execution of the Vamsadhara Project Phase-II of Stage-II is inevitable in view of the non-availability of storage facilities in the existing project due to which adequate supplies to the contemplated ayacut under Left & Right Main Canals could not be supplied when necessity arose. The Government of Andhra Pradesh is justified in taking up the Vamsadhara Project Phase-II of Stage-II Project as the Project neither involves submergence of Orissa lands nor effect any territory of Orissa. Further, it is submitted that except the component of Neradi Barrage under the original Vamsadhara Stage-II (for which proposals the Government of Orissa has given their consent), all the other components of the original Vamsadhara Project Stage-II were taken up under Phase-II. Hence, the Orissa Governments concurrence is not necessary
481
to utilize equitable & judicious share of the State of Andhra Pradesh by construction of the Side Weir. Further, it is submitted that as per the Honble Supreme Court Judgment, it can be construed that the works of Vamsadhara Project Phase-II of Stage-II can be continued after obtaining necessary interim relief from the Tribunal and it is not correct that the works can only be commenced / the asset could not be put to use till the Tribunal pronounces a final decision in the matter as remarked in the CAG Para. All efforts are being made by the Government of Andhra
Pradesh to complete the works of Vamsadhara Project Phase-II of Stage-II including obtaining necessary interim relief from the Tribunal for taking up the work of Flood Flow Canal and Side Weir at Katragada. SUSPENSION OF WORKS BY CONTRACTORS OF 2 PACKAGES It is submitted that the contractors of 2 Packages have stopped the respective works and demobilized men & machinery; in spite of the Departments notices preventing them the same. Necessary action will be initiated against the Contractors as per the agreement conditions duly obtaining legal opinion. Further, the Contractors have to take up / continue further works as per quality specifications envisaged under the agreement in respect of the not yet grounded / incomplete bridges & other structures. The costs thereof have to be exclusively borne by the default Contractors only. The Department will make sure that the contemplated works will be completed qualitatively.
482
5.25.4 Entrustment of Works No observations of the Audit 5.25.5 Status of the Project Vamsadhara Project: The works of Vamsadhara Project Phase-II of Stage-II have been taken up under EPC system and the contractors have to carry out the investigation, survey, designs & drawings and preparation of hydraulic particulars as per the scope of the Package work under the agreement. The proposals submitted by the Contractors based on the survey & investigation work regarding the hydraulic particulars will be scrutinized by the Department and as per the guidelines in vogue & as per the IS Code specifications, the same will be approved by the Department. The remark mentioned in the Para that there was an abnormal delay in approval of hydraulic particulars and commencement of civil works for two years is not correct as the investigation, survey & preparation of hydraulic particulars is within the scope of the agreement and the Contractors are obliged to perform the task positively at the earliest.
483
5.25.5.1 Land acquisition Vamsadhara Project: The land acquisition issues under Vamsadhara Project Phase-II of Stage-II are being sorted out in co-ordination with land acquisition & revenue authorities. 5.25.5.2 Rehabilitation and resettlement Vamsadhara Project: The Rehabilitation & resettlement issues under Vamsadhara Project Phase-II of Stage-II are being sorted out and main emphasis is being given to resettle the displaced families under the prioritized submergence villages in the R&R colonies. The R&R benefits due to them as per the Government of Andhra Pradesh R&R Policy 2005 are being paid prominently along side. 5.25.5.3 Failure in protecting financial interests of Government
It is submitted that as per the stipulated conditions in the Agreement, the Contractor of Package-88 has furnished the Bank guarantees for the following amounts. (a) Earnest Money Deposit @ 2.5% of Bid Amount for an amount of Rs. 1,66,70,214/- with a validity period up to 15.03.2009.
484
(b)
Additional Security Deposit for an amount of Rs.
6,01,000/- i.e. difference between the tendered amount and 75% of internal benchmark value (since the tender was beyond 25% less than the internal benchmark arrived by the Department); with a validity period up to 12.04.2007. The Contractor is obliged to extend the validity of the EMD Bank Guarantees up to the defect liability period as stipulated in the agreement conditions. So, the above Earnest Money Deposit and Additional Security Deposit, totaling an amount of Rs. 1,72,71,214/- was submitted in the form of unconditional and irrevocable bank guarantees. Subsequently, the agency had not completed the work within the stipulated agreement period or by the extended agreement period i.e. up to 31.03.2009. The Contractor had extended the above Bank Guarantees from time to time as per the extended periods of Agreement; with the latest validity period being up to 14.02.2011 for BG of Rs. 1,66,70,214/-; and 12.04.2011 for BG of Rs. 6,01,000/-. Subsequently, the Contractor was addressed by the Department to further extend the validity of above Bank Guarantees; but in vain. It is again reiterated that the Contractor has unfulfilled work to be executed arising out of contractual obligation and thus he is bound to keep the Contract in live by submitting necessary EOT proposals and keep the EMD Bank guarantees valid. But the agency did not respond to the several of the Departments requests to extend the validity of the BGs for an amount of Rs. 1,72,71,214/- which were submitted / intended as a cover or protection against inconvenience or possible loss likely to be caused by any breach of the Contractor
485
However, in view of the Contractors rigid & unflexible stand to extend the validity of BGs, the Department has proposed to recover the above amount of Rs. 1,72,71,214/- arising out of EMD Bank Guarantees from the bills of the works executed under various circle of the Department. It is further submitted that no losses will be entertained by the Department on this matter due to the rigid stand adopted by the Contractor. It is reiterated that the Department will protect financial interests of the Government duly recovering the amount from the bills of the other works executed by the Contractor in various Circles of the Department. 5.26 Uttarandhra Sujala Sravanthi (Dr. Babu Jagjeevan Ram Uttarandhra Sujala Sravanthi) Government constituted a Group of Ministers to take decision on the Projects takenup under Jalayagnam. Based on the recommendations, preparation of DPRs and Procurement process will be taken up in due course.Action will be taken by the Department to obtain all necessary clearances before grounding the work. The data collected at Dowlaiswaram considered from 1965 to 2005 for a period of 40 years to arrive at the % success of the scheme which is working out to 81% of dependability. Hence the contention of the audit that there is no assured and dependable source of water is not correct.Tender notice was issued but tenders are not received for want of Government orders in the matter.
486
5.27 Venkatanagaram Pumping Scheme 5.27.1 Project Formulation and Basic Information No comments 5.27.2 Preparation of Detailed Project Report VNPS Preparation of Detailed Project Report: This is an extension of the existing scheme for stabilization of ayacut and to include the new ayacut to benefit more areas in the upland of East Godavari District. The original administrative sanction for Rs. 58.43 Crores was accorded based on the line estimate submitted to the Government in the year 2004 for the ayacut of 30000 Acres. Subsequently, the revised administrative approval was accorded for Rs. 124.18 crores in March 2008 due to increase in the ayacut to 36000 Acres and the DPR was prepared for the revised ayacut during April 2007. Tenders were invited and work was awarded prior to preparation of DPR to gain time in completion of the project and to derive early benefits. 5.27.3 Project Approvals No comments 5.27.4Clearance of Central Water Commission VNPS:
487
The ayacut under Venkatanagaram Pumping Scheme was covered in the mighty Polavaram Project for which the CWC has already required. 5.27.6 Entrustment of Works No comments 5.27.7 Status of the Project VNPS Status of the project : The excavation of Main canal was completed except for a length of 500 M in 2 gaps which could not be completed due to court cases and other unforeseen problems. The excavation of 2L Major Distributory was completed except 125m length, which could not be done for want of clearance of land compensation payment dispute. The excavation of 4TE Major was completed for about 5 Km Length and the balance work is in progress. 1R & 3R Distributories could not be excavated due to objections of ayacutdars stating that they don't require canal water. given Hydrological Clearance. Hence no separate Hydrological clearance for Venkatanagaram Pumping Scheme is
488
489
6. Project Completion
6.1 Creation of Irrigation Potential: In the year 2004, the Government of A.P. has given top priority for irrigation and identified 26 projects to be taken up as Prioritized Projects Out of these, 8 nos of projects were proposed to be completed and 4.261 Lakh Acres (Stabilization). in 2 years to The remaining create an Irrigation Potential of 13.557 Lakh Acres(New) 18 nos of projects were proposed to be completed in 5 years to create an Irrigation Potential of 33.826 Lakh Acres (New) and 14.931 Lakh Acres (Stabilization). The Audit projects created is a pointed out that the progress of 1.12% as against only 34% but of not
creating the targeted ayacut through completion of dismal expenditure. Here the audit has considered the IP (new) under completed projects considered the IP Created under ongoing projects of
10.74 Lakh acres which works out to be 16.78 percent. Hence the contention of the audit is not correct. Subsequently the Govt. of Andhra Pradesh named the irrigation programme as Jalayagnam and the number of projects proposed are increased to 86 Nos with an estimated cost of Rs.1,85,610 Crores to provide irrigation facilities to 97.03 Lakh acres (New) besides stabilization of 22.535 Lakh acres (Details enclosed in Annexure-I). The facts and figures mentioned in Table 6.1 on I.P. creation by the Audit are totally wrong and factually incorrect. The total New I.P. created till 03/2010 is 15.423 Lakh acres and Stabilization is 3.271 Lakh acres
490
which works out 15.635% of the total contemplated ayacut. The Expenditure incurred till 03/2010 is Rs. 45,337.08 Crores which is 24.426% of total sanctioned cost of 1.86 Lakh Crores. The figures shown in the table 6.2 (of draft CAG report) regarding gross irrigated area (under canals) and net irrigated area (under canals) from 2001-02 to 201011 and audit pointed out that gross irrigated area has increased more than the net irrigated area indicating that in fact stabilization of old I.P was more than creation of New IP. But it is observed that these ayacut figures are localized ayacut only .The entire IP created under Jalayagnam projects is not yet localized and it is under process. The ayacut created under Jalayagnam Projects are not included in the above mentioned table 6.2. Hence audit remarks on this are not justified and factually incorrect. More over the source mentioned as Directorate of Economics & Statistics office does not cover correctly the figures of Age old projects like NSP, SRSP, Deltas etc. 6.2 Completion of Projects: The projects taken up after 2004 and completed are 6 nos but not 3 nos as pointed out by audit. Further in 6 Nos completed projects, the new I.P created is 39,022 Acres and ayacut stabilized is 1,65,458 acres. Hence the audit remark that no new I.P was created is not correct. The projects Madduvalasa Stage-I, Chagalnadu LI Scheme are spill over works continued after 2004 and completed in the year 2006-07,2007-08 respectively.
491
Hence they are taken into Jalayagnam projects.
6.3 Completion of Packages The projects Under Jalayagnam were divided into large and convenient packages and works were entrusted to agencies on EPC turn-key system. Overall procurement process is improved for ensuring timely execution of works In with to quality minimize from and the overall time, various transparency. works, order
components of projects such as land acquisition, R&R, clearances Directorates/Departments are taken up simultaneously. Even though the Govt. have taken all the precautionary measures, works were delayed, due to involvement of large extent of land to be acquired, various types of clearances to be obtained from various departments and number of court cases and inter-state issues. The main reasons for the delay in completion of Jalayagnam projects are 1).Land Acquisitions on a very large scale. 2).Various Clearances involving Crossings, National Highways etc. Forest, Railway
3).Rehabilitation & Resettlement issues in Reservoirs. As was the experience completion of Major Projects was taking up as much 20 to 30 years due to various reasons. In order to overcome this large time period Govt. has gone in for simultaneous implementation of large number of Projects on EPC Mode.
492
The Government has taken the following steps to expedite the works : a) Clearances: Creating a full time Chief Engineer post for getting all Clearances from Government of India. b) Land Acquisition: Creation of 5 Special Collectors, 44 Special Deputy Collectors and streamlining procedures at District Collector level and at C.C.L.A. level under Committees have enabled acquisition of as much as 6.07 Lakh acres under Consent System out of 7.86 Lakh acres requisitioned c) Forest land: With continuous persuasion with the MoEF, Government of India, Forest Clearances are being obtained for various projects after rigorously following involved. d) Rehabilitation & Resettlement: The State Government has evolved a R & R policy which is acclaimed to be superior to the National R & R policy by all social scientists. Government have also specially created a post of Commissioner, R & R for speedy implementation of R & R programme. e) Railway & National High way crossings: The projects matter Authorities with are constantly pursuing for the early respective Departments the elaborate procedures & formalities
approval of designs and construction of Bridges. In spite of various hurdles/constraints, the Government is determined to complete all the projects taken up under Jalayagnam in a planned manner duly providing the required funds every year. Based on progress of work, 50 projects are
493
prioritized for speedy completion of work so that fruits of the projects will reach needy people at the earliest with parallel Land Acquisition, Clearances and of the Departmental clearances. With all these steps it is expected to complete most of the projects by 2017-18.
7 Quality assurance:
1. JNLIS: a. b. The third party quality control as well as the E.P.C. Agencies The Third Party Quality Control staff as well as the E.P.C. have prepared the Quality Management Plan. Agencies are furnishing Test Reports of works taken up every month along with bills. As per the Govt.Memo No.11481/Reforms/2007,dt.6.11.2007. The Third party quality control agreements should be extended on par with the contracting EPC agencies and package works are to be carried out under supervision of third party quality control agencies which is inviatable. 2. AMR SLBC project: The quality assurance and quality management plan were received. The test results arrived in the contracting agency laboratory are almost tallying with the results of reputed laboratories which was compared subsequently. The quality control is being looked after by the departmental quality control wing 3.Indira Sagar Dummugudem: Preparation of QMP are prepaid by the agency and reviewed and it will be placed in web. Independent third party QC is
494
established for ensuring quality of works at design and execution stage. Conducted all test required in the field and in the laboratory and submission of reports to the department. The Superintending Engineer has conducted fortnight meetings with EPC agencies and third party quality agencies. Before finalizing third party QC Agencies the Departmental QC Staff have checked the execution of works. The inspection by the 3rd party Quality control agencies is satisfactory and they established inspection central of and mobile Inspection laboratories reports for facilitating also being works. are
communicated to Executive Engineers. 4.ISPP After the designs are being approved by the competent authority, the TPQC Agencies are allowing the contracting agencies to ground the works after checking their adequacy. The contracting agencies are being pursued to furnish QMPs to the TPQC Agencies without any default in order to ensure effective quality checks. The TPQC (NAC) of package 17 of Indira Sagar Polavaram Project is actively involved in the initial study of approved designs and specifications of EPC agency. The Quality Management Plan (QMP) for the packages was submitted by the agencies and the same will be transmitted to TPQC agencies for review. The QMP for package 62, 63 & 64 are with the department and the same will be transmitted to the TPQC Agency. For the remaining Packages, the department is constantly pursuing with
495
the Agencies. As soon as received from the Agencies it will be transmitted to the TPQC Agency for review.
5. HNSS :
Guidelines issued from time to time by the Government are being followed in awarding the TPQC Works. Regarding TPQC in Package 23, the proposals for black listing the TPQC Agency are submitted to the Government.
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8 Monitoring:
For monitoring of Jalayagnam Projects, Prioritized Projects Monitoring Unit (PPM Unit) was formed at State level. Apart from the monthly progress reports, both general and Project-specific reports addressing key bottlenecks like Land Acquisition, finalisation of Designs and Drawings, Statutory and Other Clearances are being obtained regularly from the concerned Officers. Review meetings are being conducted regularly at various levels i.e. Circle level, Unit level, regional level and also by the Secretary & Honble Minister for Major & Medium Irrigation. The Power Point Presentations and any other reports on Jalayagnam necessary works as called to the for by the higher project authorities are prepared and furnished for review and to issue directions concerned authorities. The Honble Chief Minister is also reviewing Progress of Jalayagnam Projects based on the above status reports prepared by PPM Unit. RDLIS: With available staff in the department they are monitoring all the bottle necks encountered during execution. Main bottle necks are LA, Forest Land, Railway Crossings and Clearances from CWC. The Progress reports are prepared based on the work executed component wise and sub component wise during
497
month according to the mail stone programme.
Dr. BR Ambedkar Pranahita Chevella Sujala Sravanthi (PCSS) The preliminary information on the project was furnished by this office to the Audit. were prepared, Date on But the audit requested for which LA proposals were detailed information such as Date on which LP schedules submitted by the agency, Date on which LA proposals were forwarded etc., which are available in the field offices. The information obtained from the field offices is furnished herewith. Indirasagar Polavaram Project: The package no.4 and 5 of ISRMC were awarded to the agencies on EPC turnkey system. In EPC turn key system, approved the in payments the bay are wise being made only after completion of a particular bay as per the percentage subcomponent payment schedule. After achieving the required section as per the approved HPs and approved drawings, the payment will be made as per the agreement conditions. For this purpose, recording of soil classification in the M.Bs is not required, as the payments are not made based on soil classification. However, after recording the details of reach/ chain age wise measurements and arriving the quantities in the M.Bs the payment on that particular bay is being arranged. The particulars relating to land acquisition in respect
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of packages 4 & 5 of ISRMC such as LA case No , Amount
of advance paid , authority to whom payment made, cheaque no. & date, award No. & date etc. have been sought for during the audit. Since the irrigation Department is not competent to maintain the above records and the said particulars are being dealt by the land acquisition authorities. The same was replied during the audit to the audit party. JNLIS : In regard to link channels, tenders have since been called and the works will be taken up immediately after finalization of tenders The E.P.C. Agency M/s Patel Engineering Ltd is executing the Lift-I and Lift-II have also engaged machinery and the vehicles on hire basis from the others for early completion of the entrusted packages, but not Subleted the work. Agencies are taking up the required lining on either sides of the structures in terms of agreement conditions. Agencies have been given instructions to protect the test cubes in a store shed. Finalization of works has to be taken up by the agencies since the works are in progress. E.P.C. Agencies as well as the third party quality control staff are conducting required tests at the field laboratory. and also in the Central laboratory. Advance intimation to the Third party quality control staff and the
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quality control staff is being given by the respective agencies about the laying of concrete if any and other critical works before taking up of works by agencies. All the E.P.C. agencies have since been directed to provide amenities to the labour engaged on the works as per agreement conditions. The AVR HNSS Project is established with good
organization set up duly consisting 2 units. 1 for Phase-I located at Anantapur and another for Phase-II located at Srikalahasthi. Under these 2 units, there are 3 circles, one at Kurnool as Circle No. I, one at Anantapur as Circle No.2 and another at Madanapalli as Circle No.3. Under each circle, there are 4 divisions with each division supported by required staff. entrusted for early execution. Engineers to Assistant The works are Thus, there is a well, Engineer/Assistant
established system of organization set up from Chief Executive Engineer level for monitoring and execution supported by Circle scale establishment. The information as called for by the audit party was furnished at every level to the A.G. Party. VELIGONDA PROJECT: The Chief Engineer (Projects), Ongole unit was sanctioned in the year 2005 for speedy and timely execution of projects. Due to non finalization of regular seniority lists, sometimes full additional charge arrangements were made. During the inspection of Audit time, the chief Engineer A.P.E.R.L, Hyderabad was F.A.C of Ongole unit
500
and therefore not available at Ongole for audit inspection. Further, the Government, have sanctioned only the Chief Engineer post and the supporting staff are on deputation from other local offices. However replies were furnished to the audit party subsequently. 8.1 Project Monitoring System : Figures depicted in the web site were at variance with the actual progress report in respect of JNLIS : Two Packages were updated out of 14 Packages of JNLIS. The Figures depicted in the web site were at variance with the actual progress report in respect of JNLIS because of non updation of the data. Project Tracking of 17 Jalayagnam like Projects PCSS, (including important projects
Dummugudem-Nagarjunasagar Tail Pond etc.,) was not included in PMS : 1. The Completed projects and also the projects taken up under non EPC were not included in the PMS since the web site is designed for EPC system where the role of Agency, Third Party Quality Control is involved. 2. The Projects like PCSS, DummugudemNagarjunasagar Tail Pond were not included in the web site because the Projects are in the initial stage and the PMS and QMS system will mainly start after completion of investigation work i.e., during execution. Now PCSS is included in web site as investigation of eight packages are completed and
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execution started. 3. Now all the Jalayagnam Projects are included in the web site.
The format meant for review meetings was never updated with important observations noticed and instructions issued during this review meetings: There is no such format provided in the PMS for review meetings. minutes of Necessary instructions issued to the concerned Project during the review meetings are communicated by meeting Authorities for adhering to the instructions therein. Further the project Authorities are instructed to submit action taken reports on the above. The format for Quality Monitoring System was not updated regularly with details of QC tests conducted, defects noticed and rectifications thereof etc., The programme and progress including Quality aspects are to be furnished by four parties namely 1) Nodal Officer (nominated by the concerned Project Authority), 2) Contracting Agency), 3) Departmental Quality Assurance Officer (DQAO), 4) Third Party Quality Control Agency. The Quality Monitoring System is being updated
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Agency (EPC
regularly with details of Qc Tests conducted, defects noticed and rectifications thereof
Although none The of
PMS the
provides agencies
for had are
uploading uploaded
of any 38
photographs showing the progress of work, photographs for any packages: project photographs available for packages in different projects as on 16.06.2012.
Sripada Yellampalli Project The PMS website is being uploaded for Physical and Financial figures by the department. The latest photographs showing the progress of work for each package will be uploaded and regularly monitored. Hence the Para may be dropped RDLIS: Action is being taken to upgrade the PMS web pages duly instructing the Engineers-In-Charge and agencies. Has been included. Now has been updated. Has been updated. All the photographs have been updated. JNLIS : The same is being verified and updated
503
Dr.B.R.A.P.C.S.S The PCSS project was recently included i.e., in February 2012, in the Project Monitoring System. Since then, details of the project are being updated.
Polavaram Project: Action is being taken to update the PMS & QMS Websites and the agencies concerned are being pursued to upload photos of their respective works on monthly basis. Projects in North Coast: The format for quality monitoring system for the projects under Chief Engineer, North Coast are being updated regularly along with details of Q.C tests conducted, notifying of defects, rectification of defects etc., In respect of the PMS, the Superintending Engineers are frequently requested to update the format meant for review meetings with important observations noticed and instructions issued during review meetings along with uploading of photographs showings the progress of work.
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9 Financial Management
9.1 Budget The budgetary allocation for Jalayagnam from 2004 onwards is given in the para below:
Budget S.No Financial Year (Rs. In Crs.) 3 4,246.00 Expenditure (Rs. In Crs.) 4 3,331.00 1.10 0.10 2 3 2005-06 2006-07 6,374.00 10,042.00 6,569.00 9,109.00 1.80 3.52 0.79 4 2007-08 13,014.00 12,039.00 3.49 1.12 5 2008-09 16,511.50 10,002.29 4.39 1.08 6 2009-10 17,813.33 12,154.88 0.89 Irrigation Potential (Lakh Acres) 5 (New) (Stab) (New) (New) (Stab) (New) (Stab) (New) (Stab) (New)
1 1
2 2004-05
505
0.19 7 2010-11 11,000.00 9,627.07 0.93 0.19 8 2011-12 15,010.04 11,369.49 0.78 0.04 16.936 Grand Total 94009.04 74,202.85* 3.962 Total IP created (New+Stab) 20.898
(Stab) (New) (Stab) (New) (Stab) (New) (Stab) Lakh Acres
About Rs.61,500 Crores had been spent on Jalayagnam projects.
The Government of Andhra Pradesh has been providing enough allocations in its annual budget which have been going up in every financial year since 2004. There has been some uncertainty during the years 2008-09 and 2009-10 due to general decline in the States economy. The Finance Department has been regulating releases of funds based on ways and means position. The Irrigation Department foreseeing the flow of money, started prioritization of the projects since 2009 itself and certain projects which were nearing completion and some projects which are time bound and are externally aided were included in the prioritized projects list. year. These projects were given adequate funds from the State budget every The annual expenditure for the programme is averaging nearly Rs.10,000 crores since last 6 years and despite the constraints in the States budget, the allocation has not come down. As projects are getting completed,
506
and some projects are at initial stage, the financial management is done with utmost care and diligence. Therefore, to conclude that the budgetary allocations has been less or is declining is incorrect. financial management The of the finance have Government. projects There is proper in the State been periodically
reviewed both at the CM level and at Cabinet level which has ensured that the completion of the projects always remain in focus and resources are properly channelled.
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9.2 Funding under Accelerated Irrigation Benefits Programme(AIBP) of GoI CE, AIBP : Project Status is true. But the performance is not contrary to AIBP Objective, keeping in view the following facts: Majority of the projects received only 25 % Central Assistance (CA). CA received up to 3/2012 for the 22 projects taken up under AIBP since 2005-06 is Rs. 4294.17 Crores. An expenditure of Rs. 14297.71Crores has been incurred as on 3/2012. An IP of 3, 31,197 Ha has been created against the total AIBP targeted IP of 12,07,937 Ha. (Details are appended as Annexure II) CA received up to 3/2012 for the 22 projects taken up under AIBP since 2005-06 is Rs. 4294.17 Crores. (CA received for the four projects under AIBP in context is Rs.108.07 Crores) An IP of 3,31,197 Ha as against the total AIBP targeted IP of 12,07,937 Ha has been created An expenditure of Rs. 14297.71Crores has been incurred as on 3/2012. A Note on the project wise bottlenecks encountered in project implementation is enclosed herewith as Annexure III. Project Implementation got delayed due to the specific nature of the bottlenecks and not on account of faulty prioritization of projects to be executed. Achievements under AIBP are already mentioned under item 1. Hence to state that there was no improvement is far from reality.
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9.3 Allocative Priorities 9.3.1 Outstanding bills There is no difference in the bills outstanding for payment between I&CAD and Director of Accounts. Some discrepancies may have arisen due to reconciling of paid bills and updated bills. There is no savings to contractors due to this. Infact late payment of bills resulted in the slowdown prioritizing of of works, project which for has been set funds right by channeling towards
prioritized projects. The views of Finance (W&P) will be taken separately and submitted if required.
9.4 Impact on State finances The observations of audit are entirely misplaced. The Completed project and partially completed projects have given water to approximately 21 lakhs acres as authenticated by district collectors (annexures).The total value of agreement is Rs 1.23Lakhs.In last Six years, money paid towards the work is Rs 6000 Crores. The physical progress of the work is more than financial progress of the remaining projects, except the PCLIS & Dummugudem tail pond which are being expanded for eight years milestone, therefore the budget in the state will be minimal to complete the remaining projects and also continuing working in PCLIS or Dummugudem Tail
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Pond project.
The conclusion of C & AG that jalayagnam was driven by award of works to contractor is completely biased as preconceived. The project which are part of PMRP and which have been in the intial stages of planning, since last few decades cannot be said to be illconceived or hasty. Any little understanding of the area of Rayalaseema and telangana ,which have been one of the most country, would appreciate the endeavour of water the scarcity area and also fluriode affected areas of the government to bring relief simultaneously and not in a staggered manner through mobilization of its resource and technically feasible solution in the shape of projects .The last six years performance under Jalayagnam has proven that dispite of gigantic works, sometimes against nature .still substantial progress have been achieved in most of the works which are above 75% of Completion stage. The remaining project (PCLIS & Dummugudem Tail Pond) will also be completed in time by 2018-2019. Delays are inevitable when works are taken up on such a scale. The taking up work on a scale has been done to bring relief to the drought affected or water affected areas of the state which not only receive the recognization of the country being included in PMRP. (List enclosed). The assertion of the Audit that the work has taken to benefit contractors betrays the lack of knowledge on the part of audit who feels that the assets are being created for the
510
contractor and not for the people of the state .The audit para therefore may be dropped.
10 Conclusion:
The creation of public infrastructure is one of the prime responsibilities which falls on the elected Governments. In fact the Governments are supposed to work towards creation of public infrastructure, the creation of storage and distribution network in water resources management is one of the key infrastructure in a country like India which is basically agriculture based. The State of Andhra Pradesh, which suffers from drought in many of the Telangana & Rayalaseema districts and also suffered through ages from lack of drinking water due to fluoride affected areas in the state, there was no other option but to maximise its water usage from the available as well as flood waters. The series of droughts during 1980s and 1990s also resulted in migration and suicides of farmers in these areas. These factors prompted the Government of India to come up with a special relief packages like Prime Minister Relief Package (PMRP) etc., in the states of Maharashtra, Karnataka and Andhra Pradesh to bring relief and one of the main areas of focus in these districts was irrigation. A number of projects were included in the PMRP where 90% grant is provided for projects in drought prone and tribal areas. The Government of India included these projects based on the necessity and gravity of the situation and not for any extraneous reason as
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alleged by the audit team. The remarks of audit shows complete lack of understanding of the situation in some of the districts of Andhra Pradesh. The ground realities, emerging social tensions due to
continued drought and the need for immediate solutions to the problems which was lying unattended for decades. Any phasing or piecemeal of solution, like taking up project in some districts while leaving other districts would not have met the objective of PMRP. The state had the financial resources to take up those works in a short of span of time and was prompted by the assurance of Government of India in the shape of PMRP made the decision of Jalayagnam possible. The Government of Andhra Pradesh took the initiatives and has shown that the growth of State resources could result in financing these projects which could have been wasted if directed towards consumption instead of asset creation. A large number of projects are above 75% completion stage. This kind of intervention has been unprecedented in the country where the major key decisions were taken to bring relief to the deprived areas of state, when the technology and resources both were channelled towards major infrastructure improvement. Generally with the boom in the states economy, the resources gets spent/consumed on the revenue expenditure or wasteful expenditure but in the present case, the resources were directed towards creation of basic infrastructure for the farmers of the State. All the contracts and tendering was done through eprocurement platform in the department. It is not known as to how
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the audit has doubted the transparency in the contract and tendering. E-procurement is one of the modern improvements which ensure fair play and transparency. In EPC Projects in the state payment were tied with milestones instead of quantities as was done in certain lump-sum contracts. In fact this was done purposefully so as not to loose sight of milestones and completion of work is not lost in achieving quantities which used to happen earlier. It was not perfect system on the day one but mid course correction was done wherever Government felt that corrections are required. We can see from the number of GOs and instructions that were issued to streamline the system to execute the works. One has to insist that the work being done by the contractors is not for the contractors but for the people of Andhra Pradesh who will benefit. The assets are being created, and the contractors are engaged to create assts for the state. Therefore, without enhancing the contract price, any facilitation which was done to get the works completed was in states own interest. Therefore, if certain methods were taken and decisions were taken to smoothen the process for execution of the works without altering the agreements value then those measures were only to expedite the completion of works and not to benefit the contractors. In fact it was to the credit of the Government that completion of works was primary objection and not getting embroiled in legal disputes and delays. The contention of the audit that the cost of work has gone up is incorrect. Generally the scope of work has not undergone any change by adding extra work unless the scope itself
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has undergone change by adding more areas under ayacut, or establishing missing links in the original scope. As far as JV partners of contractors is concerned the detailed replies have been given in the relevant sections. It has been done as per laid down rules of Government of India, PWD code, Government Orders and general finance rules. In the whole report not a single instance audit has pointed out about the violation of Government Order, Code, or Rules. The department has not violated any code, rules, or GFR. Therefore to conclude without any evidence of violation of the codes, government orders it is not fair to come to conclusion of benefit to contractors. Rushing to conclusions like reduction in the scope of work quantities etc., have been arrived by audit by selective analysis of component and quantities in those components. The draft report requires to be revised and all comments which do not show any violation of criteria as fixed by the Prl. AG for performance audit should be withdrawn.
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Go To Contents Performance Audit Report on Jalayagnam

Response of Irrigation & Command Area

to the Draft Performance Audit

Irrigation & CAD Department. Government of Andhra Pradesh

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5.12 5.13 5.14 5.15 5.16

5.22 5.23 5.24

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5.27 6 6.1 6.2 6.3 7 8 8.1 9 9.1 9.2 9.3 9.4 10

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Go To Contents Performance Audit Report on Jalayagnam

Financial Progress Above 50% 9 20 13 42 Below 50% 11 7 9 27

Coastal Telangana Rayalaseema Total

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Go To Contents Performance Audit Report on Jalayagnam

Go To Contents Performance Audit Report on Jalayagnam

Go To Contents Performance Audit Report on Jalayagnam

Go To Contents Performance Audit Report on Jalayagnam

The construction of all bridges across the canals falling

Go To Contents Performance Audit Report on Jalayagnam

The construction of these deleted portion of bridges will

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Go To Contents Performance Audit Report on Jalayagnam

COASTAL RAYALASEEMA TELANGANA TOTAL

253089 295891 370431 919411

204528 294591 276603 775722

142677 255465 198960 597102

110412 40426 171471 322309

Go To Contents Performance Audit Report on Jalayagnam

Deputy Collector (LA) for early completion of land acquisition.

The land acquisition authorities are

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Land Acquired (in Acres)

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Canal Network Package No I Canal Network Package No III Total:

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Go To Contents Performance Audit Report on Jalayagnam

Go To Contents Performance Audit Report on Jalayagnam

Go To Contents Performance Audit Report on Jalayagnam

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Technical Advisory Committee (TAC).

The project is strictly in

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However, there was no response.

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time problems are inevitable in synchronized manner certain

execution of such huge dam projects. Even though the project

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