HYDERABAD: The second phase of the Krishna drinking water project to bring in an additional 90 million gallons per day to the twin cities has lapsed into the delay mode and is unlikely to meet the November-deadline.

Works came to a grinding halt early January following the Central Excise authorities imposing excise levy on steel used for manufacturing the pipelines reportedly amounting to Rs. 24 crores. Stung by the sudden reversal, contractors brought the works to a halt even as the excise authorities issued a notice to the water board authorities to arrange for immediate payment of the levy.

Imbroglio continues

Twenty days after works came to a standstill and with no signs of they beginning again, the water board authorities insist that an understanding had been reached with the Central Excise authorities on `exemption from excise levy' and it was agreed in principle to commence works. But, the imbroglio seems to be far from over.

The bone of contention has been the various pumping stages.

While the excise authorities maintained that exemption on steel would be given only to one stage of the four — Kodandapur to Nasarlapally; Nasarlapally to Godakondla; Godakondla to Gungal and Gungal to Sahebnagar — the HMWSSB authorities insist there is no multi-stage pumping involved at all.

"It is one continuous lift from Nagarjunasagar to Autonagar on the city outskirts. The reservoirs midway are only to ensure there is enough suction for the 116 km haul. There are no distribution outlets either midway," HMWSSB Director (Projects) D. Ramakrishna said.

Undertaking sought

Following this, the Central Excise authorities have been insisting on an undertaking from the Collectors of Nalgonda and Ranga Reddy districts through which the pipeline passes that there was no multi-stage pumping and that excise exemption could be given.

The Collectors were yet to issue fresh certificates on excise exemption for the entire length of the pipeline works.

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