Friday, October 02, 2015

Akola barrage project cost rose 188% in two years

Times of India: Mumbai: Friday, 02 October 2015.
Virtually every irrigation project approved in the past decade seems to be riddled with irregularities as more dirt emerges in the mega dam scam. The latest revelations pertain to the Purna Barrage-2 project (Nerdhamna) in Akola district. Its cost unexpectedly increased from Rs 182 crore to Rs 525 crore between 2009 and 2011.
Documents procured by the Nagpur-based NGO Jan Manch under the Right to Information Act show the project was approved, tender process initiated and advance money hurriedly sanctioned to the contractor. The proposal to sanction a mobilization advance of Rs 28 crore to the contractor travelled across four districts and was approved within three days. The Vidarbha Irrigation Development Corporation (VIDC) pushed the project through despite knowing the barrage's design was still tentative.
The chief engineer, Amravati, had requested WAPCOS, a public sector consultant under the Union water resources ministry, to design the barrage as the state central design organization had no experience to design such a huge structure on black cotton soil. "Instead of waiting for the design, VIDC officials, allegedly under political pressure, floated and awarded the tender to a joint venture company, SMS Infrastructure-D Thakkar Constructions," said official sources. SMS Infrastructure is owned by BJP Rajya Sabha MP Ajay Sancheti.
In 2011, WAPCOS finally submitted the design two years after the tender was awarded and work on the project was already 40% complete. In August 2011, the executive engineer, Akola irrigation division, informed the contractor that the project cost had now shot up to Rs 521.5 crore because of the new design. "Since 30% to 40% work is completed as compared to revised cost, you are requested to accelerate and submit the work programme by increasing machinery, manpower and raw material at site so as to complete the work at the earliest," said the letter to the contractor.
But when the contractor demanded payment for the excess work, the executive engineer wrote back that he had still to take sanction for the excess work from the VIDC headquarters in Nagpur. "This is illegal. How can a new design at inflated cost be allowed without the approval of VIDC?" said sources.
Soon after the tender was awarded in 2009, VIDC quickly sanctioned a mobilization advance to the contractor. The tender document had no provision for sanctioning such advance money. However, a subsequent government resolution said it was releasing the advance payment because the contractor had asked for it.
Official documents show the proposal file to release money to the contractor travelled swiftly across four districts within just three days. The file moved from the division and circle office in Akola to the chief engineer's office in Amravati, from where it was sent to the VIDC headquarters in Nagpur. From Nagpur, the file reached Mantralaya in Mumbai, where the then water resources minister Ajit Pawar gave the final nod. The entire process was completed between March 24-26, 2009.
Documents also show that none of the three bidders "qualified" to execute the work. Tender conditions stipulated past five years' experience of various construction activities. However, a contractor produced undated certificates of experience. "It was found the certificate of work of the winning bidder was completed in 1999," said Jan Manch. RTI documents also show that two of the three bidders were associates in concerns with common directors. The NGO alleged that many of the certificates are also forged.
Jan Manch said it asked the anti-corruption bureau (ACB) to investigate the project, along with several others. But top ACB officials said they will require the permission of the state government, especially since BJP heavyweights are involved.