CAG raps HP govt for cost,time overruns in hydro projects

The Larji project located on Beas River in Kullu district was delayed for 125 months and completed at a cost of Rs 1293.69 crore. The envisaged per unit and per MW costs of 24.47 paise and Rs 1.34 crore increased to Rs 2.40 and Rs 10.27 crore respectively,which was perhaps the highest ever spent on a singe run of the river project,said the report.

The CAG has strongly recommended action against the officers,beside recovery of interest on the Rs 5.83 crore paid to contractors. It also suggested imposition of penalty of Rs 1.54 crore on the officers responsible for the mess.

Some of the reasons that cost the government dear are: delay in taking up construction works,change of design,non inclusion of some items in detailed project report,overpayment to favorite contractors,a total mismatch in construction activities of civil and electro-mechanical and high rates.

The project was approved in 1987 by the Planning Commission at a cost of Rs 168.85 crore but the actual work started in 1990-91 with a completion schedule of September 1996.The project was completed in October 2006. The CAG report has conveyed its strong displeasure to the government for not taking any action against the officers,who wasted hundreds of crores of public money.

During the recent Budget session of the Assembly,Congress MLA GS Bali had raised the issue of inordinate delays in commissioning of hydel projects. In case of Jangi Thopan Powari (1000 MW) —a project whose allotment to a foreign company,Brakel Corporation,was quashed by the High Court detecting serious irregularities — the government has already suffered a delay of four and a half years. This means nearly 12 per cent free power (approximately 2332.8 million units) have been lost.

“I have been persistently raising the issue of delays. My stand is vindicated by the CAG report. It’s up to the government to make completion of the projects time-bound or impose heavy penalty on the power producers — including state and Central sector agencies to pay heavy penalties,” Bali demanded.

In the report CAG claimed that due to delays in completion of projects,there was less availability of power making the state purchase power at much higher rates,besides loss of revenue.