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Response ofIrrigation & CommandArea Development Department
to the Draft Performance Audit
Report on
JalayagnamVol. 1
Irrigation & CAD Department.
Government of Andhra Pradesh
July 2012
V
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Table of Contents
Sl.No.
Name of the Para
Reference to
Paragraph
1 Over view 1
2 Audit Frame Work 2
3 Planning 3
4 Selection of Process 3.1
5 Assessment of water resources 3.2
6 Project formulation 3.3
7 Requirement of Power 3.4
8 Provision of Standby Pumps 3.5
9 Benefit - Cost Ratio 3.6
10 Inter-State issues 3.7
11 Project Approvals 3.8
12Taking up of Projects without fulfillment ofPre-requisites
3.9
13 Tendering and Contract Management 4
14 Empanelment of Contracting agencies 4.1
15Cartelization/Suspicious and unfairtendring practices
4.2
16 EPC System of Contracting 4.3
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I&CAD Department sincerely expects at least for now, the information
given in the accompanying document will result into suitable
modifications of the draft Report. In any case, the version given by the
Department shall also be included before passing any verdict in the
final Report. It is also expected that the final Performance Report on
Jalayagnam will also appreciate constraints faced by, and corrective
steps taken by the Department from time to time. The final Report will
not be a mere indictment and will also come out with the concrete
constructive policy and other suggestions to be implemented at the
Government and field levels.
Genesis of the Projects under Jalayagnam
It is important now, to explain how a project is approved and
implemented in the public sector. In this connection, the first and
foremost is the felt need for having such a project. Based on felt need,
techno-economic feasibility and viability of a project is assessed. Only
such viable projects after obtaining necessary financial concurrence gothrough a process leading to the administrative approval. Those
projects having techno-economic viability, financial concurrence and
the requisite political will (with technical and administrative sanctions)
are implemented. This entire process is not static but a dynamic one
based on the analysis of ground realities. This often, leads to
variations between line and detailed estimates. It does not mean that
one is correct and other estimate is inflated or incorrect (unlesssupported by corroborative evidence). Any one conversant with basic
project management, knows that even detailed estimates (thats why
called estimates) depend upon a number of variables such as designs
etc., that evolves over a period of time. Before pronouncing any thing
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fishy, the concerned agencies are supposed to verify facts, try to
appreciate reasons and come to an informed conclusion.
Detailing is possible to an extent and no system can take into account
several emerging internal and external factors. In addition due to
various reasons, a few projects though, having necessary
administrative sanctions are not grounded for quite some time. As and
when such projects are grounded, it leads to inevitable cost escalation.
However, such incidents are part of contemporary public policy. Table
1 below gives a comprehensive picture of all 86 projects including 4
projects yet to take off though all taken up under Jalayagnam.
Table 1: No of projects sanctioned in a financial year and Amount of
Administrative approval of these projects
(Amt. in Rs. Crs.)
SN Financial
Year
No. of
Projects
Original admn.
Sanction1 Prior to 2003-04 8 785.152 2003-04 4 1353.893 2004-05 36 71727.144 2005-06 6 2397.165 2006-07 3 4643.686 2007-08 10 11313.177 2008-09 15 75488.48
82 167708.97Source: PMU of I&CAD
In addition to the above 82 projects, due to various reasons 4 works
sanctioned in 2008-09 amounting to Rs.17900.69 crores under
Jalayagnam had so far, not been grounded. Some of the other projects
such as Head works of Indira Sagar Polavaram Project (ISPP), delta
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modernization and flood banks though, grounded had not yet been let
out to the full extent of their administrative approval.
As it could be seen from the Table 1, Jalayagnam is meant not only for
sanctioning new projects but also aims at completing projects
languishing even before the launching of this Program prior to 2004-
05.
Prior Scrutiny of Jalayagnam Projects by PAC
It is pertinent to mention that in the last 4 to 5 years many of the
irrigation projects taken up under Jalayagnam had already been
audited by the Principal AG and as well as, also examined by the Public
Accounts Committee (PAC). The department had also furnished
detailed information on various irrigation projects to the Secretariat of
AP Legislature as desired by the PAC as per details given in Annexure
I. It goes without saying that Principal AG and other officials of the
O/o Principal AG were active participants in all the PAC meetings. Thecopies of these documents were also as well, handed over to the
Principal AG.
Some of the issues raised in the draft Performance Audit Report had
been deliberated upon, and a considered view had already, been taken
by PAC on certain substantive issues. It defies the conventional logic
and rationale of once again raising these issues in the form of aconsolidated draft performance report even after the superior body
(PAC) had examined several related issues including CAG paragraphs.
However, the point wise detailed rebuttal is given in the successive
paragraphs of this document.
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The stand of department had time and again, been articulated in the
PAC meetings and is reiterated even in this document. In view of
enormity of Jalayagnam projects (both in terms of numbers and size),
the department resorted to parallel processing of the desired set of
actions. This approach is different from the sequential processing
approach articulated by the O/o PAG. In other words, PAG essentially
suggests so as to first complete the design, investigation and survey of
the projects to be taken up; do the land acquisition (including
acquisition of forest land, wild life sanctuary etc.); then go for various
statutory clearances (in principle site clearance from MoEF, stage one
forest clearance, deposit Net Present Value of forests and cost of
compensatory afforestation; seek stage 2 forest clearance, obtain
approval of the wild life board, clearance of Ministry of Tribal Affairs,
go for approval of various directorates of Central Water Commission,
TAC clearance of Ministry of Water Resources, and lastly investment
clearance from the Planning Commission) before awarding the work to
various contracting agencies. This suggestion is too simplistic tofollow; and also overlooks contingencies arising out of various court
cases and other litigation; and suggests uniform process for all the
irrigation projects.
Several passing comments had been made such that investment
clearance from the planning commission for the projects on interstate
rivers and their tributaries is mandatory; taking up execution ofprojects without obtaining investment clearance is not only violative of
the constitutional provisions, but is also likely to run in to trouble at
the time of releasing water since Andhra Pradesh is down stream state
for most of these rivers etc. Year wise analysis of river water going
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into Bay of Bengal (Table 2) indicates huge variations. It is once
clarified that there is no legal or constitutional hurdle for the lowest
riparian state to plan and implement certain flood water based
irrigation projects.
Table 2: Variations in Annual flood flows of major rivers in Andhra
Pradesh
(surplus discharges in TMC)
Name of theRiver
Maximum Minimum
Godavari 6081.07(1994-
95)
682.4(2009-10)
Krishna 1329.304(1994-
95)
2.281 (2002-03)
Vamsadhara 197.268(2006-
07)
31.561(2000-01)
Pennar 117.18(2001-02) 0 ( in many years)
Source: EnC (Irrigation)
Allegation that no comprehensive study was undertaken by the State
Government before taking up Jalayagnam to review (1) the quantum
of utilizable water available to state (2) quantum of water being
utilized by the existing projects (3) balance water including flood water
available for utilization in new projects is strongly refuted. The
comment that there was no evidence to indicate that the flood data of
Krishna and Pennar rivers was analyzed to access the average number
of days where flood flows are available annually and average annual
total flood discharge is also out of place. As every river basin is unique
and is different from any other basin, the question of adopting uniform
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number of flood days for designing the projects that use flood flows
does not arise.
There is also a lot of criticism in the Draft Report about the
Engineering, procurement and construction (EPC) system as adopted
by Andhra Pradesh for Jalayagnam projects. It is incorrect to say that
the tendering and contracting process lacked transparency and
financial interest of the state for not safe guarded. The following steps
taken by the Department for system improvement, increased
transparency and better quality control further reiterate evolutionary
EPC system:
Measures taken for system Improvement:
Jalayagnam, being an ambitious task with unprecedented level
of challenges in implementation, the State Government had from time
to time, taken several conscious decisions to streamline and improve
the overall procurement process for ensuring timely execution of works
with quality and overall transparency.
(i) EPC Methodology: Keeping in view, the available manpower in
the department as well as complex technical nature of the works in
terms of design and introduction of latest technology, Government
took a decision to go with internationally recognized and proven EPC
methodology. The same methodology has also been used by some of
the large Government of India Institutions. Major and mediumprojects were in turn divided into different packages. This was to
ensure that major construction companies take up such work and
bring in the latest technical know-how at a competitive price /rate.
Under this system, the agency awarded with the work, has to take up
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the investigation, survey, designs and construction of their package on
a turn key basis. In this system there will not be any scope to account
for deviation of quantities, revision of estimate etc. The EPC system
adopted in Andhra Pradesh was however, different from internationally
recognized EPC on more than one count. Internationally, there is no
cap on the tender premium. However, it was fixed at 5% and any
tender over this cap was bound to be rejected in Andhra Pradesh
Model. Similarly, tender value quoted below a certain percentage of
IBM, the bidder is expected to provide additional performance security.
Under the Andhra Pradesh system the price adjustment provision is
followed in respect of only 4 components Steel, Cement, POL and
Metals used in Electro Mechanical components; while global EPC allows
for price adjustment for all components including that for labor and
material especially, beyond agreement period.
Another positive aspect of EPC methodology is that investigation and
design for the complete project is taken up. Tenders have been called
for all the projects, keeping in view that project conceptualization canbe done comprehensively this way. It has also facilitated timely and
speedily requisitions being given to land acquisition authorities as
there are several EPC agencies conducting survey and investigation. It
also ensures that land is available in advance and government need
not face constraints of non availability of land at critical stages of
projects when the costs will be higher and projects will be delayed. It
has been attempted to match the milestone fixed, financial outlay andtargeted dates for completion of the projects under this system.
(ii) E Procurement: The entire tender process has been made
through a well established e-procurement process where, all the
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information is available on line. Guidelines in consultation with IT
department are being followed.
(iii) Rationalization of Internal Bench Marks (IBMs).: A high
level technical committee looks into finalization of IBM for all these
EPC packages consisting of Advisor/ Senior Technical Officers to the
Government, Chief Engineer, Central Design Office and concerned
Project Chief Engineer. This is to ensure the rationalization of
estimates for consistency and uniformity in the approach. The central
design office had also communicated certain standard drawings,
designs and specification to all concerned for bringing uniformity,
reducing errors and cutting down delays.
(iv) Institutional & Administrative Mechanism: A State Level
Standing Committee undertakes technical and financial evaluation of
the bids received. The committee consists of Engineer-in-Chief, Chief
Engineer, Designs; and Commissioner of Tenders, Chief Engineer
(Projects) and a representative of Finance Department (DFA). Therecommendation of this state level Technical Evaluation Committee is
further examined by the High Power Committee/ Committee of
Secretaries. All the major packages beyond Rs 100 crores go to
High Power Committee which is chaired by the Chief Secretary. These
recommendations are taken into consideration by the Government
before acceptance of bids. An Advisory committee has also been
constituted to deliberate upon technical issues and also opine uponprovisions of agreement as to an item of work is covered in it or not.
They also brainstorm on further improvements.
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(v) Land Acquisition: Over 6 lakh acres land for both projects site
and submergence area had been acquired by I&CAD Department for
Jalayagnam project through the methodology of consent award. This
prevents litigation and future cost escalation. Innovative arrangements
for expediting land acquisition were made by constituting District &
State level negotiating Committees with suitable delegations
facilitating consent awards and litigation free land acquisition.
However, this step had not overcome litigations due to political and
other reasons. Despite taking all the possible care, some critical
patches of land acquisition are still sub-judice.
(vi) Quality Monitoring Systems (Involvement of independent
agency, multi-pronged approach): The Government has given the
utmost importance to the maintenance of highest standard of quality
in all these works. Detailed quality guidelines have been issued to the
field Engineers and close monitoring of quality standards have been
ensured. The present arrangement vis--vis monitoring of quality has
multi-pronged approach involving a combination of three agencies.
a. EPC agencies in the first instance, are themselves responsible to
set up a quality control lab conducts certain tests and keep this
record available for scrutiny.
b. Departmental Quality Control Agency
c. Third Party Quality Control Agencies a novel idea of engaging
reputed professional agencies who are independent to monitorthe quality execution of works. These agencies have been
selected at State level through a transparent open bidding
system, and they do not depend upon the payment of their bills
on the project authorities as they draw their payment at state
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level. The Government also decided to create posts of Chief
Engineer, Quality Control for different regions.
In addition to these agencies, quality is also checked up at
random by the Vigilance & Enforcement wing as well as, by the
Advisors to the Government and other senior technical officers. Many
prominent experts from IIT and other reputed institutions have also
been visiting these works.
(vii) Transparency: On line sharing of information has been put in
place to bring further transparency and encourage involvement of
public at large in the day-to-day progress of execution of works as well
as maintenance of quality standards. Special software has been
developed for project monitoring as well as quality monitoring and
they have been made available online to the general public through
web page through Centre for Good Governance (CGG), Hyderabad.
The feedback boxes were also kept at different public offices
throughout the State.
(viii) EPC Codes-A compendium of instructions on EPC was
developed and shared with all concerned to bring clarity. A separate
chapter on EPC was also annexed to the existing PWD codes following
due process.
(ix) Financial Management Projects had been prioritized for earlycompletion in consultation with the Finance Department. The
Department had also taken steps to complete 13 projects and ensure
utilization of partial benefits from another 23 projects. However, by
very nature of irrigation projects, benefits commensurate with financial
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expenditure can not always be achieved unless the entire project is
completed. The year wise budget and expenditure on Jalayagnam
projects is given in Table 3. It would be pertinent to point out that
budgetary releases were a major constraint on the overall expenditure.
As on 29th Febuary 2012, 13 major and medium irrigation projects
have been completed creating new IP of 1,37,254 acres and
stabilization of another 1,89,379 acres. In another 21 projects water
has been released to 14,37,995 ac of new IP and stabilization of
2,06,853 acres. By doing systemic improvements, an additional
ayacut of 1,18,374 ac has been achieved under four old projects.
Thus the total new IP created under major and medium irrigation
projects under Jalayagnam is 16.936 lakh ac and another 3.962 lakh
ac had been stabilized (Total 20.899 lakh ac).
Table 3: Annual Budget, Expenditure & Irrigation Potential
created under Major & Medium Irrigation Projects (2004-05 TO
2011-12)
S.NoFinancial
Year
Budget
(Rs. In Crs.)
Expenditure
(Rs. In Crs.)
Irrigation
Potential
(Lakh Acres)
1 2 3 4 5
1 2004-05 4,246.00 3,331.00 1.10 (New)
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Despite the financial constraints, efforts have been made to
prioritize the projects and complete them as per agreements and
the Action Plan for completion of various ongoing projects has been
prepared by the I & CAD Department. A large number of projects
are at advanced stage. Approximately half of these projects are
above 50% level. The action plan has been prepared in detail
taking into account the present physical progress of works,
clearances, land availability, other constraints etc. and with a
focused approach on those projects which can be completed.
Constraints
The projects taken up under Jalayagnam are not being completed
as per target in view of paucity of human resources (Table 4).
There are 5 posts of ENCs, 33 posts of CEs and 88 posts of SEs. In
view of various court cases, only in-charge arrangements are made
to these posts instead of regular promotions. In addition, frequent
change of incumbency of officers at different levels due totransfers / in-charge arrangements / retirements, there is no
continuity and the successors are unable to take timely follow up
action to sustain the tempo of works. As a result the progress is
hampered and the targets are not met with. It is, therefore,
suggested to collect the up to date project/package wise particulars
for appraisal and to take appropriate follow up action.
The need for continuation of third party quality control agency in
full scale/ with reduced staff/ termination as per agreement
conditions by entrusting balance work to the departmental quality
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control staff has to be reviewed as full time Chief Engineer Q.C with
his staff is in existence at present.
Table.4: Availability of Technical Officers in I &CAD Department
Sl.No
Posts 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
1EE 447sanctioned posts
Vacancies
Nil 236 1 Nil 8 283 31 242 92
2
DEE1578sanctioned posts
vacancies
35 378 293 301 35 423 71 183 201
3
AEE
5846sanctioned posts
vacancies
1276 1374 2515 1693 502 1030 2673 1567 488*
* 1111+1300 (2411) Assistant Executive Engineer posts notified to
APPSC for Direct Recruitment.
All the activities of the Department are reviewed by various officials
from time to time and corrective actions are taken. In addition to
periodic high level reviews by Honble Chief Minister and
Minister (M&MI), all developments pertaining to Jalayagnam
projects are informed by the Department to the State Cabinet at an
interval of at least once in two months.
Most of the Jalayagnam projects were taken up in the drought prone
district of Andhra Pradesh which had witnessed continuous labour
migration, decline in agricultural activity, farmers indebtedness and
suicides. As a remedial measure to this decline Prime Ministers
rehabilitation package for these districts in the state of Karnataka,
Andhra Pradesh and Maharashtra was initiated. Irrigation project
became a major activity in these districts to assure water to the crops
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to check the decline in the farming activity in these districts. All the
medium Irrigation Projects in the drought prone district and some of
the major Irrigation Project like PCLIS. Dummugudem Tail pond were
therefore included in the Prime Minister relief package for these
districts. Therefore, the reason for simultaneously launching of the
projects must not be lost sight of while evaluating the various factors
like, preparation of DPR, time line for launching of the project finances
etc., If these reasons are kept in view, then many of the findings of
the audit can be explained, as to why Government of Andhra Pradesh
took up projects on a such a large scale in such as short time. The
nature of problem required urgent measures, which became the
genesis for taking up these projects.
The existence of farm land at a higher contour than the water levels in
the rivers, the position of Andhra Pradesh being a tail end state for
both Krishna & Godavari rivers directed the state Government to
explore for solution through available technology of lifts and big
motors and pumps. When technology and resources are available thennot directing them to bring relief to the farmers would have been
incorrect. We can produce power in a desert, but we cannot produce
water.
Therefore, the whole launching of Jalayagnam was directed by the
emerging situation in the drought prone district of Andhra Pradesh.
This requires to be kept in view while assessing the performance ofJalayagnam.
In nutshell, PAG is requested to consider the information given in this
document for finalizing the final performance report, duly considering
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the criteria, as given in the draft performance report. The performance
of the entity has to be Judged against a criteria through a
methodology mutually agreed between the audit and entity. In this
case, although audit has pointed out at many places shortcomings, at
no place, there is a conclusion arrived after judging against a criteria
i.e., a Government order, codes or even a model for undertaking such
projects.
In the absence of the performance being judged against a criteria, the
whole report appears as on exercise in piecemeal collecting evidence
and arrive at conclusions without stating, which codes, rule, order,
GFR has been violated or ignored while grounding projects. Therefore,
it would be correct to suggest that all the finding be subjected to the
criteria as already indicated, then we can arrive at final conclusion,
which would also be correct and then recommendation can be made to
improve the performance to attain the policy objectives of Jalayagnam.
Our replies for each finding is given. We would expect our replies to begiven equal printing space along with the findings while the final report
is being submitted to the legislature. The findings of audit and the
reply of entity should be given in equal measure and detail, even if the
audit does not agree with the replies given. Then only findings and
final conclusion will carry conviction and will be fair to the entity. With
these remarks on detailed reply is submitted.
Annexure-A
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As per the report of the C & AG of India of Government of
Andhra Pradesh, the details of the Performance Audit under gone
since last 6 years are as follows:
Sl.No.C & AGReport
Year endedGist of the paras Audit Para No.
1. 2004-05Performance Audit Not Conducted
2. 2005-06Performance Audit Not Conducted
3. 2006-07
Godavari Water Utilisation
Authority
(I) J.Chokka Rao Devadula LiftIrrigation Scheme (JCRDLIS)(II) Sripadasagar Project (SSP)(III) Alisagar Lift Irrigation Scheme(ALIS)(iv) Arugula Rajaram Gupta Lift
Irrigation Scheme (ARGLIS)
(V) Lendi Project and(vi) Dummugudem Project consistingof Rajeev Sagar and Indira Sagar LiftIrrigation Scheme.
3.2(Pg.Nos.56-71)
4. 2007-08Performance Audit Not Conducted
5. 2008-09 Third Party QualityControl/Assurance (TPQC) inexecution of Irrigation projects:AMRP, Pulichinthala, Telugu GangaProject, AVR HNSS, VeligondaProject, Komarambheem, Palemvagu,Kinnerasani, Thotapalli, Peddagadda,Tarakarama Theerthasagaram,
Jhanjavathi Project, SomasilaSwarnamukhi Link Canal, Pushkara,Venkatanagar LIS.
Accelerated Irrigation benefit
Programme:
In Andhra Pradesh, 30 Major/Medium
1.3(Pg.Nos.50-63)
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Irrign. Projs. and 67 MI Schemeswere identified under AIBP.1.SRSP Stage.I2.Annamayya proj3.Priyadarsini Jurala
4.Somasila Project5.Nagarjunasagar6.Madduvalasa7.Gundlavagu,8.Maddigedda,9.Kanpur Canal,10.Yerrakalava,11.Vamsadhara Ph.I,12.Flood Flow Canal of SRSP,13.SRSP-II
14.Tadipudi LIS,15.Pushkara LIS,16.Rallvagu,17.Gollavagu,18.Mathadivagu,19.Peddavagu,20.Gundlakamma Reservoir,21.Velligallu Reservoir,22.Alisagar LIS23.J.Chokarao LIS24.A.R.Guthpa LIS,
25.Nilwai26.Khomram Bhim27.Thotapalli barrage project.28.Tarakarama Thirtha SagaramProj.29.Swarnamukhi Medium IrrigationProject,30.Palemvagu and 67 Minor Irrigaaation Schemes.
6. 2009-10 Mahatma Gandhi( Kalwakurthy) Lift Irrigation Scheme
2.2( Pg.Nos.32-46 )
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3.Planning:
3.1 Selection of projects:
Andhra Pradesh is a predominantly Agrarian State
similar to many other large states in India. A Majority of the
population (More than 70%) depends and derives their
livelihoods and sustain on Agriculture and Agro based
activities. The growth of the State economy and majority
peoples well being therefore depends to a large extent on
the continuous growth and expansion of sustainable
Agriculture Sector.
The Single most important input for sustainable
Agriculture is water, which is primarily dependent on normal
or good monsoon rainfall. It is observed that in normal
rainfall years also, agriculture yields depend on timely
incidence of Rainfall both in terms of quantity & quality. The
effect of deficit rainfall is virtually crippling Agriculture
Sector to a large extent in the State. The Disastrous
consequences of continuous drought during 2000 to 2004
had broken the entire rural Agriculture based economy of
the State.
The districts affected due to droughts are as follows
DistrictTotal
Mandals
2000-01 2001-022002-
032003-04
2004-05
Srikakulam 38 16 38 28 11 8
Vizianagaram
34 17 34 34 11 6
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3.3.1 Feasibility studies:
Vamsadhara Stage-II Phase II
This project is a part of Vamsadhara Stage-I which is
cleared in all aspects. As the Government of Orissa is
objecting to the construction of Barrage from view point of
submersion, the project could not be taken up.
As such the phase-II component has been proposed
without head works but with side weir channel. In view of
that there is no difference in the status of availability of
water and ayacut to be benefited.
That is the reason why the project has been taken up
with the reports already prepared by the Department.
CBR Lingala Canal:
The Chitravathi Balancing Reservoir is an existing reservoir
to store 10 tmc Water. This balancing Reservoir is a part of
TBPHLC system and is intended to stabilize the ayacut of
59500 acres under Pulivendula Branch Canal and to serve
the Lingala Canal of 25000 acres. This scheme has been
proposed by suitably adjusting 10 tmc of water to the above
extents of canal system by adopting micro irrigation system
in the Pulivendula Branch Canal. Thus, the 10 tmc would be
available from the TBPHLC in the event of surplus years. So
the CBR right canal that is Lingala has been taken up within
the system made possible due to savings in the existing
Pulivendula Branch Canal. However, the CBR which is to
receive waters from the TBPHLC is not receiving adequate
quantity of water. In view of that the part of surplus water
that is being received into the Gandikota Reservoir System
is envisaged to be drawn to supplement the CBR system to
make the CBR system more effective from the view point of
the functionality by lifting waters from Gandikota Reservoir
System.
The integration of the operations of CBR system with
the Gandikota Reservoir is for improving efficiency of the
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3.3.3 Preparation of Detailed Project Reports
Sripada Yellampally Project
The preparation of DPR for this project was entrusted to M/s
Aarvee Associates before the award of the contract and
closely monitored, whereas the Agreement for the works of
SYP Stage-II Phase-I and NTPC Lift Scheme were concluded
on 03-04-2005 & 07-04-2005 respectively. The work of
preparation of DPR is mainly intended to get the project
clearances from CWC, which is a continuous process.
However in the mean time the works also are put on ground
to save delay.
Dr.B.R.A.P.C.S.S.
This project is taken up as per the Godavari Water
Disputes Tribunal (GWDT) report, dated 06th
October 1975, wherein the State of Maharashtra
and Andhra Pradesh have agreed in-principle to
take up this project at appropriate time with
agreed water utilization and with assured
availability of water. The Government of Andhra Pradesh has accorded
permission for preparation of detailed project
report for diverting 160 TMC of water from
Pranahita river to Sripada Sagar Project Reservoir
and creating additional Ayacut of about 12.20 lakh
acres including drinking water and industrial
requirement of Hyderabad vide G.O.Rt. No. 623, I& CAD Dept., dated 15-07-2005.
Accordingly, an Expert Technical Committee was
constituted by the Government of Andhra Pradesh
vide G.O.Ms No. 193, dated 27-10-2005 to
evaluate and finalize the bids and to take up the
work of preparation of Detailed Project Report.
The Government after careful examination of the
recommendations of the above committee decided
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3.3.4 Identification of targeted ayacut:
AMR SLBC Project:
The Government in 4/95 decided to take up Lift Scheme
from the foreshore of Nagarjuna Sagar Reservoir to give
early benefits without prejudice to Tunnel Scheme vide
G.O.Ms.No.55, I&CAD Department, dt.17.4.1995, as the
Tunnel Scheme would require 7 to 8 years to complete.
Accordingly, the Lift Scheme works were taken up and
completed. Partial benefits have been giving from 2001
onwards from Lift Scheme. Tunnel Scheme is taken up in
2005 as a permanent solution. Since the possibility of
drawing water by gravity is available for this project, the
Tunnel scheme is taken up. For most of other schemes,
there is no alternative except taking up of Lift.
SOMASILA SWARNAMUKHI LINK CANAL (S.S.L.C.)
The details of the Village wise and Mandal wise identified
targeted Ayacut pertaining to SSLC Scheme have already
been furnished to the audit. However a copy of the same is
enclosed herewith.
VELIGONDA PROJECT
In the project scope of all works pertaining to canal
networks, Mandal wise ayacut was prescribed. This is for
the reason that in the absence of detailed ayacut registers
the Village wise ayacut cant be arrived at. In fact the
preparation of ayacut registers is one of the tasks in the
EPC agreement which can be arrived at only after
finalization of HPs, BC Maps etc. So far, the village wise
ayacut finalized package wise is as follows.
Package II- 41,000 Acres
Package III- 9,500Acres
Package IV- 19,500 Acres
Package VI- 2,50,000Acres
TOTAL 3,20,000Acres
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3.4.1 Indira Sagar Dummugudem LIS
The APTRANSCO has requested the department to deposit
Rs.290.14 Crores towards the estimated cost of the
transmission scheme for ISDLIS for providing 229.096 MW.
The Chief Engineer during 09/2009 has addressed the
Government for according permission to deposit the
amount with APTRANSCO. In turn, the Government have
communicated certain remarks, which were attended by
the department during 01/2010 duly obtaining the data
from the APTRANSCO. Later the Government have
instructed to ascertain from APTRANSCO during 10/2010
details of Phases in which the amount of Rs.290.14 Crores
can be deposited with amount of each installment.
Accordingly a report was submitted to the Government by
the Chief Engineer during 11/2010. The Government vide
G.O.Ms No.59, dt: 19-09-2011 have accorded permission
to deposit the amount in 4 installments. Accordingly an
amount of Rs.136.32 Crores was deposited during 02/2012
for taking up the works of transmission scheme. There is
no time lag in completion of the scheme from the govt. or
department side.
Hence, the para may be dropped.
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3.4.2 Rajiv Dummugudem
RDLIS: RDLIS: AP Transco agreed to provide
220 KV and 132 KV transmission line and requested the
I&CAD department to deposit an amount of Rs.175.35
Crores, The Chief Engineer has requested the Government
during 08/2010 to accord permission to deposit the
amount. Replies to remarks of the Government were
submitted during 03/2012 and permission is awaited.
There is no time lag in completion of the scheme from the
Government or department side.
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4.3 JPDNSS:
DNSS: The WAPCos estimated and submitted power
quirement in the DPR as 1565.4 MW for 6 pump houses
JPDNSS. The actual power requirement calculated by I
CAD Department for 6 pump houses is 1135.87 MW, for
ich estimate is prepared and approved by the IBM
mmittee. Information regarding number of pumps to be
erated and month wise requirement will be submitted
er approval of design of pumps and motors.
nce, the para may be dropped.4.4 AVR Handri Niva Sujala Sravanti :
NSS Project proposes to provide Irrigation facility to 6,
,500 Ac in the four districts of Rayalaseema and
nking water to about 33 Lakh people living in urban
eas like Dhone, Pattikonda, Guntakal, Kalyanadurg,
yadurg, Dharmavaram, Puttaparthi, Kadiri,
enukonda, Madakasira, Hindupur, Rayachoti,
danapalli, Thambaplli, Vayalpad, Pileru, Palamaner,
nganur, Pakala, Chittoor etc., and the rural areas
route the canal using about 40 TMC of the flood waters
the Krishna River. The Project is a lift Irrigation scheme
awing the flood waters of the Krishna from the
sailam Reservoir during the monsoon period. The flood
ters of Krishna are proposed to be drawn from a point
ar confluence of the Krishna and Tungabhadra Rivers in
e fore-shore of the Srisailam Reservoir without affecting
e other committed uses under Srisailam and below
luding Nagarjuna Sagar and Krishna delta. water from
e Reservoir will be drawn when the Reservoir level is
66.67m and above, through an approach channel and
ad regulator near Malyala village in Kurnool District and
ed to EL +290.00m from there, the water will be
nveyed through a system of gravity canals cum lifts.
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4.3.6 Adequacy of time for bidding:
Adequate time has been provided to the Bidders for carrying out
the preliminary survey and investigation before tendering
depending upon the nature of work involved in the
Project/package. Hence this is not a deviation from FIDIC model
of EPC system and the contention of the audit that sufficient
time is not provided to the Contractors towards preliminary
survey and investigation before tendering is not correct.
Indira Sagar Dummugudem Lift Irrigation scheme : The
works of Indira Sagar Lift Irrigation scheme, except Pump
houses were divided in to 3 packages and Tenders were called
for in Tender No.2/2006-07, Dated.17.07.2006, in Cat.-I. Due
to Technical problems Tenders of these packages were cancelled
and were invited again vide Tender No.4/2006-
07,Dated.27.10.2006.
Financial Bids for Tender No.4/2006-07 were opened on
dt.16.11.2006 and Bids received for package Nos.21 & 22 and
there is no response for package No.23.
The tender for package No.23 was again called in tender
No.5/2006-07,Dated.18.11.2006. But, no response even for
second call.
Based on the instruction of the CE/GLIS, Warangal, the
package No.23 is divided into small packages one package in
Cat-I (package No.31) and three packages in Cat.-II (package
Nos.49,50 &51) vide CE/GLIS, Warangal
Lr.No.CE/GLIS/WGL/DCE/DEE/Camp-2, Dated.02.01.2007 as
smaller packages may have response.
Tenders were called for package Nos.31, 49, 50 & 51, in tender
No. 6/2006-07,dated.06.01.2007 for package No.31 and tender
No. 7/2006-07,dated.06.01.2007 for package Nos.49, 50 & 51.
For the response of above tenders, single bids were received for
31,50 & 51 and awarded
Hence, the para may be dropped
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4.3.9 Payment schedules:
In EPC System, payments are made to contractor as
per Payment Schedule. The total work specified under EPC
turn-key contract is divided into several components of
work to facilitate payments component wise. The
contractors bid price as approved shall be divided among
the components of work as per respective percentage of
total bid price. The payment for each of the componentworks shall be limited to the respective amounts arrived
on the basis of percentages specified.
Payment schedule can be revised (based on
detailed investigation, drawings and detailed estimation)
due to variance in estimate. For revision of payment
schedule, Chief Engineer is empowered for changes from
component to component and Superintending Engineer
from sub-component to sub-component within the
component duly keeping the total price bid value
unaltered.
Further from each bill, 7.50% of bill amount will be
retained by Department until completion of whole work
and on termination of contract in midway due to
Contractors fault, all property at Site becomes
Department property and any amount due to the
Department will be treated as debt and will be recovered
from agency with interest as per Agreement Clause.
Hence the contractor may not leave the work midway
because of revision of payment schedule at initial phases
as pointed out by Audit and no loss will be caused to the
public exchequer.
Contractors are also allowed to revise Payment
Schedules several times to their advantage
resulting in front end payments. Such upward
revision of costs for items executable in the initial
phases would result in loss to public exchequer if
the contracting agency stops the work midway.
RDLIS:
As per para 306(T) of AP Public works account code, the
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