Works on irrigation projects likely to start in Oct

Works on the proposed 26 irrigation projects totalling Rs 26,000 crore, envisaged in the five year action plan of the Congress government, are likely to start in October, 2004 as per tentative plans drawn out by the state irrigation department.

The process of allocation of works to the short-listed construction firms would soon be set in motion by the irrigation department which has been busy preparing schedules pertaining to work packages.

According to irrigation department sources, the schedules would be issued to the construction firms by next week after a crucial meeting with chief minister Y S Rajasekhara Reddy scheduled to be held on July 23.

"We will ask the firms to submit their quotations along with other particulars in a month's time. After receiving the tenders we will convene meetings with the firms and allot works according to their quotations," a senior official in irrigation department told Business Standard.

Keeping pace with the government's five-year action plan, the department is planning to complete the awarding of works of all the identified packages by September to ensure that successful bidders start work in the month of October, 2004.

The irrigation department has already prepared big work packages ranging between Rs 100 crore and Rs 150 crore each.

According to irrigation department officials, the response from the financial institutions for the proposed irrigation projects have been very encouraging.

So far two-dozen institutions and firms, including one from Union Bank of California and UTI have approached the state government and offered their help.

Some of the pump manufacturing companies and equipment manufacturers like turbines for hydro electric power projects have also approached the government to finance the proposed lift schemes and hydel projects on the Godavari river under the action plan.

"Interests rates offered by them are in the range of six and seven per cent. Repayment periods are up to 15 years. We are yet to start detailed negotiations with them," a senior official informed.

According to him several firms from Malaysia, Singapore, Dubai, and United States have expressed their interest in funding the irrigation projects proposed by the state government.