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Irregularities in project estimate lead to delays in water scheme

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The Hindu  07.10.2010

Irregularities in project estimate lead to delays in water scheme

Dennis Marcus Mathew

‘Some KWA officials misled a panel chaired by Minister'

Funds allotted for Alappuzha Drinking Water Project three years ago

‘Difference of opinion between State and Central governments is not the reason for delay'


ALAPPUZHA: The long-delayed Alappuzha Drinking Water Project, which has recently been the subject of intense political face-offs though it continues to fuel hopes of pure drinking water for the public in the district headquarters, is apparently heading for further holdups.

The project, conceived in 2007 to ensure pure water to the Alappuzha municipality and eight surrounding panchayats as part of the Centre's Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) at an initial cost estimate of Rs.151 crore, had its detailed project report (DPR) revised in 2009 to Rs.247.65 crore and still, is yet to take off.

While political parties here have been blaming each other for the inordinate delay in the implementation of the project that got funds three years ago, the actual cause of delay appears to be different. Bid offers from contractors for the original DPR of Rs.151 crore, according to official sources, were extremely high. However, instead of inviting fresh tenders, the DPR was revised to Rs.247.65 crore, thus bringing down the difference between the tenders and the estimate from about 80 per cent to about 20 per cent.

This move triggered doubts in the Local Self Government Department, with a meeting convened by the Principal Secretary (LSGD) in January this year, pointing out “grave irregularities” in the preparation of the project estimate. The rates in the DPR were found to be “intentionally boosted.”

Revised estimate

According to sources, it was also noted that certain officials of the Kerala Water Authority in Alappuzha had “misled” a committee, which is chaired by the LSGD Minister and has the Water Resources Minister, Chief Secretary and other high-ranking officials as members.

Action was recommended against the KWA officials and at the same time, the estimate was to be revised. The project team submitted the third DPR in June, fixing the cost estimate at Rs.188.33 crore.

The Government's Empowered Committee, according to a senior official, has “decided not to allow any scam” and has forwarded the third DPR to the State Chief Technical Examiner for an independent examination, only after which the project will move forward.

“It was an apparent attempt to swindle about Rs.90 crore that delayed the project, and not because of any Centre-State government difference of opinion as political parties are claiming. A probe is on and show-cause notices have been served to the officials,” a senior official told The Hindu on condition of anonymity.

Last Updated on Thursday, 07 October 2010 11:05