'AP govt saved Rs 3,900 crore in irrigation tenders'

The state government on Tuesday said that it saved over Rs 3,900 crore in irrigation tenders on account of healthy competition among bidders.

Addressing a press conference here, state minister for major irrigation Ponnala Laxmaiah said that the contract value of the works awarded to the successful bidders so far amounted to Rs 16,051 crore as compared to the benchmark of Rs 20,016 crore determined by his department.

He stoutly denied the allegations that the department has raised the estimated cost of certain packages so as to benefit certain contractors.

According to the minister, out of the 157 packages prepared at an original estimated cost of Rs 26,951 crore pertaining to various irrigation projects, the department has so far awarded works of 77 packages to the lowest bidders and the process of awarding tenders with regard to another 47 packages would be completed within a few days.

Apart from the new plans, over 11 works of ongoing projects costing around Rs 2,468 crore are under various stages of implementation, the minister said.

Explaining the rationale behind raising the value of certain projects like Polavaram left canal and Chakkarao lift irrigation project, Laxmaiah said that the area envisaged under the lift irrigation project was raised to 6 lakh acres from the proposed 4 lakh acres. The capacity of the project too has been enhanced to 50 tmc from 40 tmc.

"It is obvious that any hike in the original estimated cost is on account of the changes in the original design," the minister said.

Meanwhile, the minister announced a three-member committee to look into the construction activity with regard to a mini hydel power plant on the inter-state Rajolibanda Diversion Scheme (RDS) bordering Mahaboobnagar.

"I have written a letter to the Karnataka government seeking details of the above construction activity on January 15, 2005. We will take an appropriate decision once the committee submits its report on various aspects of the issue with full technical details by the end of this month," Laxmaiah told the media.