No Rs70k cr irri scam as much less spent: VIDC

| TN | Aug 7, 2018, 04:56 IST
Nagpur: The Vidarbha Irrigation Development Corporation (VIDC) has stated that the much talked about irrigation scam is not worth Rs70,000 crore, as it is being alleged. The amount spent on different works since its inception in 1997 to 2015 itself stands at Rs27,828 crore, said VIDC in an affidavit filed before the Nagpur bench of Bombay High Court while responding to the PIL by NGO Jan Manch.
According to the VIDC affidavit, from 1997 to 2014-15, it got Rs28,972 crore in funds. Out of this, Rs27,048 crore was from the state government, Rs1,678 crore were raised through bonds and Rs244 crore came from other sources.

The VIDC spent over Rs27,000 crore out of the amount available. This includes Rs5,141 crore towards land acquisition, Rs1,559 crore went for rehabilitation of the project affected persons (PAPs). Another Rs2,000 crore have been spent on establishment expenditure like salaries and other fixed expenses, the affidavit stated.

The VIDC affidavit says out of the total amount spent under various heads, only Rs19,101.53 crore went toward project construction. Sources said this refers to amount paid to contractors and some government agencies as well. By a ballpark estimate, the contractors may have got an amount ranging from Rs17,000 to Rs18,000 crore. That was for the work done on the projects, said sources.

Citing the figures, VIDC said that the petitioner’s allegation of a misappropriation of Rs70,000 crore is not true.

The VIDC maintained time overrun in projects was due to non-availability of sufficient funds. There was opposition to land acquisition also. In some cases environmental clearance could not be obtained. Time overrun leads to cost overrun, as the changed schedule of rates is applicable, it said.

Listing its achievements, the VIDC stated that it has completed 99 out of 314 projects and created irrigation potential of 4,5973 hectares, out of which actual irrigation is happening in over 62,000 hectares.

The VIDC has also refuted the allegation of an abrupt increase in the cost of 38 projects by Rs20,000 crore from 2006 to 2010. This also relates to the approvals on cost hikes granted by the then irrigation minister Ajit Pawar.

Pawar had approved cost hikes to a number of projects in a short span. The affidavit says that the total increase in cost was at Rs18,303 crore, out of which Rs9479 crore was due to increase in schedule of rates and Rs2,954 for land acquisition. Another Rs2,149 crore was due to change in design and Rs1,045 was on account of new provisions. The VIDC has stressed that the increase due to higher tender rates was Rs162 crore, which is less than 1% of the total hike.

The individual escalation in the costs of the 38 projects under question ranged from 0.5 to 5%, says the affidavit.

Recently, former chief minister Prithviraj Chavan in an interaction with TOI had admitted the inability to complete irrigation projects calling it a collective failure of Congress and NCP. Pawar was the deputy chief minister when Chavan was the chief minister. “We sanctioned too many projects even though we did not have the money,” Chavan had said.

WHAT VIDC SAYS

Got over Rs28,000 crore from 1997-2015 and spent Rs27,000 crore

Over Rs19,000 crore went towards project construction. This includes payments to contractors

Rest of the money was spent on heads like land acquisition, rehabilitation and establishment expenditure

Refutes charge of abrupt hike in cost of 38 projects by Rs20,000 crore

Out of the total increase, Rs162 crore was due to higher tender cost

Rs2,000 crore was on account of change in design

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