Under Bansagar Irrigation project, between 2005-06 to
2009-10, an excess and wasteful payment of more than 121 crore of rupees, 20% of
the amount spent, was made out of total expenditure of 607.03 crore, mentioned
the CAG report. It also pointed that actual irrigation was 4.19 to 15.67% of
targeted irrigation; records pertaining to monitoring of quantities and quality
of work for length of canal were not maintained; the quality of work was not
monitored and was found to be substandard; specifications were not followed;
inadequate survey work led to large variations in quantities put to tender;
department gave more emphasis on purchase than on actual execution; excess
payments to contractors were made; instead of itemised rates a lump-sump
contract system was adopted.
Under 1919 crore World
bank funded Madhya Pradesh Water Sector Restructuring Project (MPWSRP),
only 11% of the targeted irrigation could be achieved; contract
documents were not prepared with full care which resulted in deficient
internal control, inadequate monitoring, unsatisfactory performance,
financial loss and legal complications for the government while making
way for undue benefit to the contractors, said the CAG report.
Under MPWSRP project,
during May 2004 to March 2010, out of 6.20 lakh hectares of spread area
as aimed, 69 thousand hectares, i.e., only 11% of irrigation could be
achieved in 83% of the project time after spending 38.45 % of the
project cost, i.e., 688.25 crore against the sanctioned cost of 1919
crore of rupees. Only 4% of the total schemes were initiated.
The Water Resources
Department (WRD) of MP has received a loan of 1919 crore rupees from the
World Bank for integrated vision of water sector management
associating various departments; modernisation of the exiting
irrigation and drainage assets in Cahmbal-Betwa; Narmada-Tapti; Dhasan-Ken;
Yamuna-Sindh; and Tons-Wainganga basin. The project aimed to adopt
integrated development approach by ensuring involvement of line
departments like fisheries, agriculture, horticulture, animal husbandry
etc. CAG observed that these departments were not even fully aware of
the project while citing that the appointment of consultant was delayed
by 13 to 44 months; the progress of the project was so slow that, as per
the project conditions, a commitment charge of 8.26 crore had to be paid
to World Bank as a fine for non utilisation of released funds on time;
irregular awards of work costing 23.73 crore without inviting open
tenders; the full payment of 26.65 crore of cement concrete lining was
made without ensuring the quality by conducting mandatory core tests;
quality aspect of rehabilitation works remained non-assuring as
consultant was not appointed; additional security deposit of 57.51 crore
against 15 unbalanced bid (where item rates quoted by contractor were
very high as compared to estimated and market rates) was not obtained.
It further says,
contractor failed to achieve the target as per the agreement and the
cost of damages amounting to 20.93 crore, thus liquidated, were not
recovered. Even project planning was not proper and the contract for
preparing Scheme Modernisation Plan (SMP) was awarded after 34 months.
Out of 654 schemes, SMPs of 167 had already been prepared by the
department and 149 schemes were dropped. But the contractor was paid
6.01 crore for the same incurring, thereby, extra cost of 3.07 crore.
In Bansagar irrigation
project, the canal work was taken up in 1979 which was to be completed
in 1987 with the estimated cost of 10.06 crore. But, even after spending
961.01 corers of rupees by March 2010, almost 95 times of the estimated
cost, only 62% of canal work - 911.51 Km out of 1463.27 km - could be
completed and irrigation potential of 4.19 to 15.67% could be taped.
During the course of audit, several inconsistencies, lapses and breach
of contract conditions were also noticed.
Demanding a thorough investigation of the
irregularities, Samajwadi Jan Parishad called upon the Government of
Madhya Pradesh to issue a white paper on the irrigation projects.