Rs. 25,000 Crore Polavaram Project Drained
- Project Estimates Hiked from Rs. 16,000 Crore to Rs. 57,940 Crore
- Plans to Siphon off Rs. 25,000 Crore
- Works Still at Foundation Stage
- CM, Water Resources Minister Get Kickbacks Works Assigned to Sub-Contractors
Tall Claims
"We will complete Polavaram project by 2018 Kharif season and provide water for irrigation through gravity."
This was the claim of AP Chief Minister Chandrababu Naidu while taking the oath of office on June 08, 2014. After four and half years and four kharif seasons, the Polavaram project has yet to progress from its foundation stage. Meanwhile, the estimated costs of the project have been hiked from Rs.16,010.45 crore to Rs. 57,940.86 crore. If there is progress on any count for Polavaram project, it is only in the project estimates.
Chandrababu Naidu snatched Polavaram project from the centre despite the AP State Reorganisation Act, 2014 clear mandate that it should be completed by the central government. Though he had claimed that his decision would help speed up the project construction, it was the kickbacks that he actually was energized about.
Greedy CM
Once taken over the project, Chandrababu jacked up the estimated costs of the works and awarded them to his favoured contractors and sub-contractors, for huge kickbacks. The contracts of Head Works, Right and Left Canals were assigned to crony contractors through rigged tenders and on nomination basis. The collusion of the government and contractors has undermined the quality of project and awfully slowed down the speed of project.
Thus, the greed of the Chief Minister brought down the state's largest multi-purpose project. His fondness for kickbacks and commissions has jeopardized the project's completion. Today, the Polavaram officials are of the opinion that water cannot be released even in 2019 kharif, let alone 2018 kharif season.
Vision Sabotaged
It was late Y.S. Rajasekhara Reddy who envisioned Polavaram project and began the work in earnest in 2005. After securing all the necessary permissions, work began at a fast pace at an estimated cost of Rs. 10,151 crore. An amount of Rs. 5,135.87 crore was spent and most of the work including the lining work of the Right Canal was completed at that time. Work on the Left Canal was completed to the extent of 145 km.
The benefits of Polavaram are vast and its completion would immensely boost the economy of the north and central Andhra districts. On completion of this project, 8 lakh acres can be newly irrigated and the ayacut can be stabilised for 13.08 lakh acres in the Krishna Delta region. The Godavari Basin would get water for three crops in a year. As to drinking water and industrial needs, Polavaram project can provide potable water to Visakhapatnam city and 540 villages and take care of the complete industrial needs of Visakhapatnam city.
However, the project came to a standstill after the sudden demise of Dr. Rajasekhara Reddy. Post- bifurcation, the centre had declared Polavaram as a national project and promised to complete it by bearing 100% expenses. The centre has established the Polavaram Project Authority (PPA) for this purpose. However, instead of entering into an agreement with the PPA for completion of the project, Chandrababu Naidu pressurised the centre to hand it over to him.
National Level Scam
All the works of Polavaram Headworks were assigned to sub-contractors; against heavy commissions to the Chief Minister and Water Resources Minister. The Right Canal works were almost completed by 2009 and there was a little work remains to be completed in 6th and 7th Packages. Chandrababu Naidu removed the original contractors and assigned these contracts at higher costs to RSV and BASPCL, both the companies belong to aides of Chandrababu Naidu. The government took up 181.50 km excavation work of Left Canal in 2005 at the cost of Rs.1,954.74 crore. The work was divided into 8 Packages and assigned to different contractors. After 65% of the works on the project had been completed, on December 6, 2016, the government issued orders hiking the estimated costs to Rs. 3,645.15 crore.
On the pretext of not completing works in Package 5, Polavaram Left Canal. Because both the Water Resources Department and Finance Departments refused to approve the handing over of high-value works on nomination basis, the remaining Rs. 92.14 crore worth work in Package 1, Rs. 53.263 crore and Rs. 102.85 worth works in Package 4, Rs. 80.74 crore worth works- a total of Rs. 328.52 crore worth works- were given to contractors just on the word of Chandrababu Naidu!
Works in Package-1 were awarded to Surya Constructions, RSR-Sagittal (works in Package-4) ACAL- RKICPL (joint venture), Arcane Projects (works in Package-8), and works in Package-3 to other contractors. As per the revised estimates, the total value of these projects would be Rs. 1,045 crore. In these transactions, the Chief Minister made huge kickbacks. Similarly, in 2015, temporary works amounting to Rs. 523 crore to channel water from the Pattiseema lift irrigation project to Krishna Delta area was awarded to a favoured company on nomination basis.
The TDP leaders and officials also have made money from the land acquisition process of Polavaram project by deceiving the Adivasi landowners, who form a good number of the displaced. The TDP leaders and officials lined their pockets in a big way with the compensation the government sacked the initial contractor under clause 60(C) and then turned over works worth Rs. 142.88 crore to HES Infra, which belongs to Putta Sudhakar Yadav, a TDP leader, TTD Board Chairman and a close relative of the AP Finance Minister Yanamala Ramakrishnudu. As per the revised estimates, the total cost of these works would be over Rs. 350 Crore. The contractors of Packages 1, 3, 4 and 8 were also sacked under 60-C for not completing the assigned works in time.
In 2017, the government decided to supply water to Yeleru through the Purushothapatnam lift irrigation scheme and accordingly, took up works on the amounts, running into thousands of crores of rupees by duping the poor Tribal people. The same is the story with huge amounts meant for resettlement of the displaced.
It was Not Okay Then, But it's Okay Now!
In 2013, Chandrababu Naidu, while he was the leader of Opposition, had objected to Transstroy being handed a contract of Rs. 4,054 crore, saying that the firm lacked the requisite experience and financial wherewithal. However once Rayapati Sambasiva Rao, the owner of Transstroy joined the TDP, Chandrababu Naidu did not pay heed to PPA's objections about Transstroy's lack of competence to undertake the project.
On September 07, 2016, the state government secured the project and immediately jacked up the estimated cost of Headworks to Rs. 5,535.41 crore. Using Transstroy as a front, it assigned all the works to subcontractors for huge commissions. ECRF foundation works were given to L&T-Bower, cofferdam (jet grouting) to Keller, soil-related work to Triveni, Gates to BKem and concrete works to Putzmeister and Penta.
However, colossal failure of Transstroy, which was predicted, lead to handing over all the works to Navayuga Constructions, on nomination basis, in 2018. Fresh estimates suggest that these works are valued at Rs. 11,000 crore. The Transstroy was awarded these works on EPC basis. However, while reassigning the works to Navayuga, the government set aside the EPC method and brough in the lumpsum open method. As a result, each time contractors submit bills for modifications, they have to be paid additional funds without any questions asked. This would further hike the costs of projects, whch means higher kickbacks for the CM and his ministers.
Progress in Jacking Up Costs
So far, only 53.90 % of the work of the Polavaram project is completed. Of these, 37.68% works of the reservoir were completed, Right Canal works fully completed and the Left Canal works were completed between 210.927 km and 164.74 km. The value of these works is over. Rs. 14,902.34 crore. In these four and half years, Rs. 9,766.47 crore has been spent and of this Rs.6,727.26 crore has been reimbursed by the centre. To date, ECRF Dam work related to the main dam has not been completed. There is no clear timeline as to when they should be completed. Of the 45 designs related to the Head Works of the reservoir, 25 are non-existent. Chandrababu Naidu government failed to complete the project on schedule intentionally and increased the estimated costs from Rs. 16,010.45 crore to Rs. 57,940.86 crore, citing the delay that he has caused in the first place. All these facts reflect the sincerity of Chandrababu Naidu's efforts to complete this project.
source: Emperor Of Corruption
