The Hindu : Andhra Pradesh News : Minister seeks to pin down TDP <109,100> `Excess payment' cases listed

Online edition of India's National Newspaper
Thursday, Dec 09, 2004

Andhra Pradesh

Andhra Pradesh

Minister seeks to pin down TDP <109,100> `Excess payment' cases listed

By Our Special Correspondent

HYDERABAD, DEC. 8. Seeking to turn the tables against the TDP, the Major Irrigation Minister, Ponnala Lakshmaiah, listed all cases in which the Chandrababu Naidu Government had allowed excess payments of up to 200 per cent to contractors.

In contrast, the Congress Government had adopted a norm not to allow the excess beyond 5 per cent and implemented it in all the packages awarded so far, he said while making a statement in the Assembly on Wednesday.

Referring to the "disguised form" of corruption indulged in by the previous regime, he said contractors were allowed to revise the cost estimates and claim increased amounts as a regular feature.

Against a contracted sum of Rs. 15 crores for the Mittagundala deepcut, Rs. 27 crores was paid. Similarly, huge excess payments were made for K. C. Canal -with Alaganaur Balancing Reservoir- (Rs. 24 crores) Velugodu (Rs. 23 crores), Chitravathi (Rs. 7.6 crores) and a part of Srisailam Left Bank Powerhouse (Rs. 478 crores). Moreover, the quality of work was so poor that the Kandaleru reservoir developed leakages after impounding only 15 tmcft against its capacity of 68 tmcft.

Rebutting the charge that no agency had come forward to fund the projects, Mr. Lakshmaiah said funds to the tune of Rs. 20,500 crores were available.

Firm commitments

The Oriental Bank had come forward to fund Tadipudi and Pushkaram projects while the UTI Bank had offered to lend Rs 10,000 crores, ICICI Rs. 2,000 crores, Exim Bank of US Rs. 5,000 crores, Canadian consortium Rs 2,500 crores and Allahabad Bank Rs 500 crores. He said the World Bank, which was initially reluctant, was now expected to assist to the tune of Rs. 5,000 crores.

He declared that the YSR Government would execute the projects at any cost fulfilling the commitment given to people.

He justified the pre-qualified bids and turn-key methods for calling tenders on the grounds that national mega projects implemented by the National Highways Authority of India had also adopted the same route.

The Minister said the Government had appointed five Special Collectors and 45 special officers for quick acquisition of lands required for the projects.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh