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Guj faces CAG's ire over Sujalam Suphalam

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BS Reporter Mumbai/ Ahmedabad

Gujarat government continues to face criticism for its ambitious water project-Sujalam Suphalam Yojna (SSY). Comptroller and Auditor General of India (CAG) has slammed the state government for ignoring the decision to award one contract to a single contractor for execution Sujalam Suphalam Spreading Canal (SSSC) projects, which led to delay in project implementation.

According to one of the clauses of tender documents for SSSC work, one bidder was to be awarded only one contract or package depending on the capacity of contractor. The sole objective of this was to ensure no scope for extension of time limit and complete the work within the stipulated time.

 

Ignoring the decision to award one contract to a contractor, the state government gave 102 contracts involving Rs. 396.30 crore to 16 contractors. "Though the contractors were qualified for one project each, none of these agencies could complete the work within stipulated time (between March 2004 and March 2008). Thus, awarding the large number of projects also contributed to the inordinate delay in completion of the SSY", CAG observes in its report for the year ended 31 March 2008.

Delay in land acquisition and in obtaining permission from forest, railway and road authorities also added to the delay in SSY implementation. The report further takes notice of unrealistic estimates in many cases. This resulted into huge undue benefits to contractors.

"Apart from this, execution of work of Sujalam Suphalam Spreading Canal (SSSC) without public participation led to additional burden of Rs. 55.73 crore on the exchequer", notes CAG. In the wake of non-completion of four pumping stations under SSY, investment of Rs. 255.70 crore became idle. " Due to incorrect fixation of unit rate avoidable laibility of Rs. 21.01 crore was created", adds the report.

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First Published: Feb 20 2009 | 12:30 AM IST

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