CAG raises concerns over funding, tenders in Polavaram project
Vijayawada | Desk: The Comptroller and Auditor General of India (CAG) has issued a stern warning and corrective advice to the Andhra Pradesh government regarding the implementation of the ambitious Polavaram Irrigation Project. In its Performance Audit Report for the period 2017-18 to 2022-23, the CAG clarified that if the project is to be completed on time, the Andhra Pradesh government must resolve submergence disputes with Chhattisgarh and Odisha as a priority, in collaboration with the Polavaram Project Authority.
According to the report, construction of protective embankments is mandatory to protect villages in neighboring states from submergence, but despite the 2014-15 deadline having passed, work has not yet begun due to the lack of public hearings in these states.
The CAG also raised serious questions about financial management and budgetary allocation. The audit found a significant reduction in the state government's budgetary support for the project during 2019-23 compared to 2018-19. The report recommends ensuring adequate funding for the state and optimally utilizing the allocated funds.
In addition, the CAG also exposed irregularities in the tendering process. The report stated that several works were awarded on a nomination basis, violating rules, and that the reverse tendering process was bypassed to benefit select agencies.
The CAG directed the government to make Engineering Procurement Construction (EPC) contracts transparent and take stringent measures to prevent unfair benefits to contractors.
The report also emphasized expediting the socio-economic survey and obtaining early approval of the Detailed Project Report (DPR) for the distribution network from the Central Water Commission.
The CAG has clearly instructed the state government to accurately determine the land in the submergence area, the affected families (PDFs), and the land required for rehabilitation (R&R) based on revenue records.
It is worth noting that the Polavaram Irrigation Project is a multipurpose national project being constructed on the Godavari River in Andhra Pradesh, with the primary objective of addressing the state's irrigation, hydroelectric, and drinking water needs.
The project aims to irrigate approximately 7.2 lakh acres of land, generate 960 megawatts of electricity, and provide water for industrial and domestic use to cities like Visakhapatnam.
It also plans to divert excess water from the Godavari River into the Krishna River basin through its large reservoir and canal system. However, the project has long been in the news due to rising construction costs, disputes related to the submergence area with neighboring states like Chhattisgarh and Odisha, and challenges in rehabilitation (R&R) for thousands of affected families.
The audit emphasized that the rehabilitation of all affected families must be completed before the reservoir is filled with water to avoid a humanitarian crisis and ensure prompt approval of revised cost estimates from the central government.
The main dispute between Chhattisgarh and Andhra Pradesh regarding the Polavaram project concerns the submergence area and the displacement of tribals in Sukma district. The Chhattisgarh government argues that the construction of the dam will submerge approximately nine villages and 2,475 hectares of land in Sukma, threatening the livelihood and culture of thousands of tribals.
Furthermore, the rising backwater levels of the Shabari River, a tributary of the Godavari, pose a risk of severe flooding in the region. The state government alleges that Andhra Pradesh failed to obtain their consent when changing the dam's height and design, nor did it conduct proper public hearings in the affected areas.
