As of March 2023, the Polavaram Irrigation Project's headworks remained incomplete, despite being initiated 17 years prior. The physical and financial progress of the Polavaram Hydroelectric Power project was also limited, at only 12% and 17% respectively.
This period covers the tenures of the previous Congress government (during the unified Andhra Pradesh era), the previous TDP government, and the YSRCP government following the state's bifurcation in 2014.
According to the Comptroller and Auditor General's performance audit of the Polavaram Irrigation Project (PIP) from 2017-18 to 2022-23, which includes the TDP (2014-19) and YSRCP (2019-24) governments, ₹7,423 crore was allocated for the main dam works. However, only ₹5,757 crore was actually spent.
The CAG report, presented to the Assembly, stated that despite 17 years, the headworks remained incomplete.
The report also raised concerns about the tendering process, alleging that works were awarded based on nomination, allegedly in violation of rules. It also flagged irregularities in the contract agency selection, citing alterations to tender conditions and selective awarding of contracts in contravention of government rules.
The YSRCP government undertook a "reverse tendering process" for some projects between 2019 and 2024.
The CAG recommended that the state government develop a fair and transparent tendering process, ensuring compliance with prescribed rules and government orders to promote competitive bidding.
The CAG noted that the overall physical and financial progress of the Left Main Canal (LMC) and Right Main Canal (RMC) stood at 76% and 72.6% respectively.
Regarding land acquisition, the report said that requisitions were filed for nearly 1.68 lakh acres, but only 1.13 lakh acres (67.4%) was acquired by March 2023.
Despite the project involving the submergence of 373 habitations in 222 revenue villages, affecting over one lakh Project Displaced Families (PDFs), the CAG pointed out that only 11,677 PDFs were relocated to Rehabilitation and Resettlement (R&R) colonies.
While 213 R&R colonies were planned at an estimated cost of ₹13,262 crore, only 26 were complete and 49 were in progress as of March 2023.
The CAG also highlighted a significant decrease in budgetary support for the project during 2019-23 (erstwhile YSRCP government) compared to 2018-19 under the previous TDP government.
Budget utilization for the mega irrigation project ranged between 21% and 66% between 2017 and 2023.
"The expenditure was largely focused on construction works, with least priority given to land acquisition and R&R activities. It is recommended that the state government ensure adequate budgetary support and enforce upon the Department (Water Resources) for optimum utilization of allocated funds for timely completion of the project," the report stated.
Due to the delay in the completion of the socio-economic survey and approval of the Detailed Project Report (DPR) by the Polavaram Project Authority/Central Water Commission (CWC) for the distributary network, the Revised Cost Estimate (RCE) submitted for the 2017-18 price level by the Government of Andhra Pradesh (GoAP) remained unapproved by the Government of India (GoI).
Furthermore, the CAG highlighted that the construction of protective embankments for the submergence villages in neighbouring Chhattisgarh and Odisha, which were due to be completed by 2014-15, were not even commenced by the Andhra Pradesh government.
Commenting on the planning and execution of headworks and canals, the CAG emphasized that deviation from the planned construction schedule and the absence of a contract agency to mitigate the flood situation resulted in floodwater not flowing through its normal course.
"The diversion of floodwater was not possible due to the non-completion of the construction of the spillway and spill channel. This resulted in floodwater passing through the available gaps of the cofferdam, causing damage to the partially constructed cofferdams and D-Wall (diaphragm wall)," the CAG stated.
Moreover, it noted that the rectification of the D-Wall was not undertaken as of March 2023.
