Rs 160 cr spent on Puri drinking water project a waste, says CAG

The state government's expenditure of Rs 158.16 crore on a drinking water supply project at Puri remained unproductive, said the Comptroller and Auditor General of India (CAG).

"Due to improper planning, tagging a state project and lack of coordination between three departments of government, an entire expenditure of Rs 158.16 crore remained unfruitful," it said in its general and social sector report compiled for the year ending March 2014.

The project, conceptualised in July 2008, went through several revision and addition and was divided in 39 components among three departments, Housing and Urban department (for installation of water pipe, treatment plan), Revenue and Disaster Management (for land acquisition) and Water Resources (for development of water source) for smooth execution, but never reached completion. "Audit noticed that though Rs 158.16 crore had been expended upto September 2014, yet the project scheduled for completion in December 2011, was not completed as of December 2014," according to the report. The project was initially funded by central government scheme of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), and Rs 166.90 crore was earmarked for it in July 2008. The state government later attached the original project's water supply provision with its project Samuka Beach, by adding funds from own resources and taking the project cost to Rs 243.98 crore. It issued administrative approval for construction and land acquisition in July 2009.

Due to addition of project cost, another detailed project report was prepared, overriding earlier one, which resulted in delay in project implementation and cost escalation. Because of the delays, the state government lost Rs 61.73 crore central assistance for the project. Also, it did not invite tender for the work and awarded the contract to state-run Odisha Construction Corporation without making available the site land, which resulted in cost overrun and unfruitful expenditure, the CAG said.

The departments have assured to complete the work by March 2015, ahead of Rath Yatra in July this year, when around three million pilgrims are expected to visit the holy town. Last month, in a correspondence with the Health department, the state Housing and Urban department said, steps are being taken to treat available piped drinking water in the town as several samples test checked by government laboratories showed the water in the area is not suitable for human consumption.