Andhra Pradesh’s Jalayagnam irrigation scheme unviable, contract-driven, says CAG draft report
Devadula lift irrigation scheme in Warangal is the second biggest in Asia. But the state does not have enough power to operate it
In 2004 when the Andhra Pradesh government launched Jalayagnam, the mega irrigation programme was touted as a solution to the agrarian crisis in the state’s drought-prone and backward regions. It was also pitched as a programme that would bring relief to the power-starved state. But going by a draft audit report of the Comptroller and Auditor General of India (CAG), it seems Jalayagnam, launched ahead of the assembly polls that year, was an election gimmick of the then Congress government of late Y S Rajasekhara Reddy.
The state neither has enough funds nor water to implement the Rs 1,86,000-crore programme, according to the draft CAG report. Jalayagnam envisages 86 irrigation projects mainly on the Krishna, Godavari and Pennar rivers and their tributaries, and aims at providing drinking water to one-fourth of the state’s 80 million population and irrigation to more than half of the state’s rainfed areas. It assumed the importance of a dream project in the backdrop of the fact that more than half of the state’s cultivated area is rainfed. Over the years, there has been sharp increase in groundwater exploitation, especially in the Telangana and Rayalaseema regions that receive scanty rainfall.
But most of the projects were taken up without carrying out feasibility studies, settling inter-state disputes or obtaining necessary clearances (see ‘Projects faltered’), says the draft CAG report. “It appears that Jalayagnam was largely driven by the urgency to award contracts rather than focusing on immediate benefits to targeted beneficiaries,” it says.
Although 12 projects are said to have been completed under Jalayagnam by January this year, they were actually ongoing projects incorporated into the programme. None of the projects were providing water to farmers when CAG prepared the report, despite claims by the government that it has created irrigation potential for 849,000 hectares. Although the government had promised to complete Jalayagnam in five years, 74 projects are still under construction; 49 of them are far from complete. This is despite the fact that the programme received Central assistance of Rs 4,015.26 crore for 22 projects.
The CAG report says the programme is weighed down by ill-planning, which could render it ineffective.
Planned on unavailable water: No comprehensive study was done on the availability of water for Jalayagnam projects. The CAG audit revealed that the water required for successful implementation of the projects on the Krishna and the Pennar is far more than the water allocated to the state (see ‘Overambitious’). The water allocated to the state is already being overdrawn by existing projects. The government planned Jalayagnam projects on the rivers saying it would utilise flood water. But then flood water is available only for a few days—around 30 days in the Krishna—in a year and cannot satisfy the projects’ demands. Several projects, for instance A V R Handri Niva Sujala Sravanthi and Jawahar Nettampadu lift irrigation Scheme on the Krishna, are technically unviable. Projects like Indira Sagar Dummugudem on the Godavari, too, do not have assured water availability, points out the report.

Not enough power: Thirty-one projects under Jalayagnam are lift irrigation schemes where water needs to be lifted from the rivers by use of motors and pumps, which would require about 206 million units of electricity a day. This is when the average power consumption of the state was 160.80 million units a day in 2009-10. This means even if power supply for the entire state is shut down and diverted for the lift irrigation schemes, there would still be a shortage of 44.2 million units a day. The state will thus not be able to operate the irrigation schemes, notes the report. Being a power-deficit state, Andhra Pradesh purchases power from independent power producers at high rates. Even at the minimum Rs 2.60 per unit, the total funds required for the schemes would be Rs 5,533.58 crore a year, it adds.
Benefits inflated to suit contractors: The benefit-cost-ratio (BCR) has been inflated for many projects, says the report. This includes Jalayagnam’s most expensive Pranhita-Chevella lift irrigation project on a tributary of the Godavari. It aims to provide water to seven districts. BCR for the project was worked out based on assumptions, not facts.
The report notes that Jalayagnam appears to be driven by awarding a large number of contracts, without any assurance on completion of works within the envisaged time and budget. The contracts were awarded to favour contractors, putting the state’s interests at risk. “In most cases, the technical sanction was obtained after the bidding, clearly pointing to the possibility of manipulation in favour of certain bidders.” Firms that were not qualified for bidding entered through back doors. CAG’s audit also revealed that parties in joint venture (JV) firms changed their partners several times to form new JVs to bag contracts. In the Pranahita-Chevella project, four firms obtained 16 contracts worth Rs 22,885 crore by forming JVs in 16 different combinations.
High on aspirations, low on funds: The state government started implementing all Jalayagnam projects simultaneously without assessing the availability of funds. As a result, the programme has put huge financial burden on the state. As of April 2011, the state incurred a liability of Rs 1,27,084 crore—87 per cent of the state’s budget for 2012-13. Besides, the government is yet to adequately compensate and rehabilitate the 131,000 families, including indigenous people and farmers, displaced by the projects.
“...the government is saddled with a huge number of projects which are nowhere near completion. The financial burden of these incomplete projects on the state exchequer will be felt for a long time to come,” notes the report. Instead of taking up 86 projects simultaneously, the government should have prioritised projects over medium to long term and focused its attention on a few projects, ensuring that adequate resources are allocated and the projects are implemented properly, observes the report.
The state irrigation department is now in the process of proposing changes in the draft report and preparing explanations to the charges raised in the report. “The draft report has made sweeping statements without going deep into ground realities,” says S K Joshi, principal secretary with the irrigation department. “CAG believes in a step-by-step process whereas the government believes in a parallel process. The government is keen to see that farmers in rainfed, drought-prone regions get irrigation facilities fast, he says. Refuting the allegations regarding inter-state disputes over Jalayagnam projects, Joshi cites the recent agreement between Andhra Pradesh and Maharashtra for Pranhita-Chevella project. He hopes the final CAG report will include the proposed changes.
Namaskar,
I am sorry to state that the present report is politically motivated and malaise report. Some time back I wrote a letter to Hon’ble Prime Minister of India, Dr. Manmohan Singh, condemning the report by CAG and observations made by Montek Singh Ahluwalia the deputy chairman of planning commission of India on the Jalayagnam at the meeting with Andhra Pradesh Chief Minister and other officials during the Plan Allocation meeting. None understood the objective of Jalayagnam initiated by Dr. Y. S. Rajashekar Reddy as it goes against certain vested interests. He was looking at development of rural Andhra Pradesh. Vested groups attribute motives for everything what he initiated after his death including those who appreciated them when he was alive. Unfortunately, after his death execution of irrigation projects is plagued by regional politics on one side and inter-state politics on the other. Everybody wants encash the politics for their selfish gains. The objective is if I am not getting, other should not get. They are happy if Krishna & Godavari water goes as waste in to Bay of Bengal – hundreds and thousands of TMC of water every year. Let me come to the point of present report:
All the statistics are bogus. Let me explain this with three examples.
1. Surplus water from Krishna River: Bachawat tribunal allowed Andhra Pradesh to use the surplus water around 450 TMC of water. Of this around 50% is allowed dry Rayalaseema to use; while the rest is allowed to use at 25% each of dry Coastal Andhra and dry Telangana. In this, in deficit years the three regions have no claim but whatever is surplus water the three regions can share at 2 : 1 : 1 ration. To use such water government of Andhra Pradesh has to build projects, which will not be cleared by Central Government but state government has to clear them – they have to be brought to the notice of CWC. During TDP time such projects were identified and laid foundation stones – by N.T.R. and later by N. Chandrababu Naiudu second time – but they were not built. Just at that time Dr. Y. S. Rajashekar Reddy [Dr. YSR] became the Chief Minister of the state and proposed Jalayagnam in which these projects were also included and started building the projects. He was aware that before the Bachawat tribunal period expires these are to be executed to get water allocations as was done earlier. But, unfortunately some politicians created hurdles at every stage just basically because, if these projects are not completed the surplus water, which hither to be utilized illegally by North Telangana & north Coastal Andhra – which already benefited by the allocated share of water [811 TMC with 1 : 2 : 3 = Rayalaseema : Telangana : Coastal Andhra] for the last more than two decades. With the projects for surplus water are completed, they may not get this illegal facility. It is like, two cats are fighting on how to share one roti, and the monkey intervened and ate everything. Same thing is now happened with the New Brijesh Kumar Tribunal. This tribunal was handpicked by the Karnataka politician as Law Minister. So this new tribunal re-wrote everything in opposite direction to what Batchawat tribunal defined to favour Karnataka & Maharashtra and eliminated surplus part which was allowed by Batchawat tribunal to use by Andhra Pradesh. The new tribunal changed the statistics, and thus changed the mean flood flow by more than 185 TMC and thus favoured Karnataka to raise the Almatti height. Thus, as a result Andhra Pradesh is going to face drought situation in more than 50% of years, which was less than 25% under Batchawat Tribunal award. Unfortunately, the advisors to Andhra Pradesh irrigation department on this were mostly retired irrigation engineers whose loyalty is with Karnataka and Maharashtra as they were part of Hyderabad state in which parts of Karnataka and Maharashtra was part of Hyderabad State. When Andhra Pradesh state was formed they were joined with their respective states but they stayed here -- in their places Rayalaseema and Coastal Andhra added to Hyderabad state under new name called Andhra Pradesh. Here the separate state group TRS is now supporting the Brijesh Kumar verdict – they wanted the benefits must go to Karnataka and Maharashtra and not to Rayalaseema or Coastal Andhra – the reasons as stated above. Neither CAG nor Planning Commission Deputy Chairman or the authors of the present report under stood this aspect.
2. Polavaram Project: To stall this project high level and low level politics are played day in day out. It is like Abhimayu was killed by stalwarts illegally, groups of people are trying to kill this project. At Delhi level the polititrics are played primarily. The Finance Minister said there are no funds in 11th 5-year plan. Then immediate reaction is MoEF/ Jairam Ramesh sent a letter to AP government on public hearing in Orissa and Chettisgadh – though he was elected from AP his loyalties are with Karnataka. Though the government of AP wrote letters to these governments on this, they did not responded – AP allocated funds for this. As per EIA Notification, 2006 – according to EIA Notification, 1994 there is no need for such public hearing under which EC was granted to Polavaram project – if the governments did not carry out public hearing within 45 days then MoEF regional office located in Karnataka can conduct public hearing on its own. This was not done. Now Jairam Ramesh blaming AP government. Here one important point: on the orders of Supreme Court, a committee visited Polavaram Project site and gave clean chit by saying that the project has not violated Bachawat tribunal award. Now, TRS supremo’s daughter filed a case in AP High Court – already cases are pending in Supreme Court --. Now this person did not find time all these years basically because the Polavaram contract was given to an associate of TRS contractor. The rival group from TDP – no. 2 in the list of contactor – filed a case saying the contract was given illegally to that contractor. Later government cancelled the contract and advertized new. Then the TRS person realized the plight of submerged people. In fact the R & R package announced by Dr. YSR government was appreciated by Prime Minister himself as the best in the country. TDP politicians talk day in day out against Jalayagnam are the front runners of Jalayagnam contacts. This is the political game. Let us see few facts on the project:
Indira Sagar (Polavaram) is a multipurpose project constructing across the River Godavari near Polavaram Village about 42 Kilometers upstream of Sir Arthur cotton Barrage at Dowlaiswaram. This is an irrigation-cum-hydro-electric power project. The Polavaram Project has been under consideration since 1943. The Technical Advisory Committee (TAC) of Central Water Commission issued clearance for the second time on 4th January, 2011. Indira Sagar (Polavaram) Project Profile: Construction Expenditure: Rs. 16,010 Crores; Water Utilization: 273.04 TMC; Total Ayacut: 7.2 Lakhs Acres; Power Generation: 960 MW; Water Diversion to Krishna Delta: 80 TMC – interlinking of water from Krishna & Godavari Rivers, which was cleared by Bachawat Tribunal. List of Clearances: 2005 September: Central Forest and Environment Ministry given clearance for Land; 2005 October: Environmental Clearance; 2006 July: Forest and Wild Life Clearance; 2007 August: Central Tribal Welfare Department Rehabilitation Clearance; 2008 December: Forest and Environment Ministry First Phase Forest Clearance; 2009 January: Central Water Commission Technical Advisory Committee Clearance (First Time); 2009 February: Finance Commission Investment Clearance; 2009 March : The Project getting assistant under Accelerated Irrigation Benefits Programme (AIBP). Polavaram Project has been waiting for National Status for four years. The Project received all clearances and waiting for a final nod from EPC (Expenditure and Finance Committee). Benefited Districts: East Godavari: 250000 Acres in 16 Mandals; Krishna District: 62000 Acres in 07 Mandals; Visakhapatnam District: 150000 Acres in 10 Mandals; West Godavari District: 258000 Acres in 17 Mandals; Villages under submersion: 299.
Irrigation is a state subject and planning, execution, funding including resettlement and rehabilitation of the project affected families is within the purview of the concerned state government. In order to expedite completion of the project, the project was included in Accelerated Irrigation Benefits Programme during 2008-09. There are about 44574 project affected families out of which, 277 project affected families are rehabilitated up to the reporting period. This information was given by the Minister of State for Water Resources, Shri Vincent H. Pala in a written reply in the Rajya Sabha today.
I can write more but I stop here by bringing out two points on rehabilitation and resettlement. In the case of Pulichintala balancing reservoir reports say the rehabilitation and resettlement was carried out extensively but in place of the real ousters of the project the outsiders got the benefits. Here who to blame – is it the Jalayagnam or the people involved in such barbaric acts. This is common in most projects. Recently, TRS Supremo’s son come up with a new request on another project saying the displaced were decided in 2006 and now they have grown and R & R package must be given to such extra people. Will this create excess money use in R & R then is it the fault of Jalayagnam for such. The cost escalation is created by vested interested groups and it is nothing to do with Jalayagnam. The good objective behind the Jalayagnam was mosque by good for nothing comments. Let me ask has the CAG report or Ahluwalia observations looked in to the some of the facts mentioned above. The answer is no. How Ahluwalia know the issue when he can allocate lakhs are rupees for two toilets in his office.
Pranahita-Chevella project that help seven districts in Telangana region in terms of drinking water (including drinking water to Capital city) and irrigation was the brain child of Dr. YSR, which is a first of its kind in Indian irrigation sector. Even P. V. Narasimha Rao could not dare to undertake such project in his own area being the Prime Minister of India for full 5-years. Now the AP politicians are happy with raising their salaries by hundred times but not interested to look in to allocating funds to complete the projects.
You may not be aware another innovation of Dr. YSR. In2008 the irrigation engineers mis-managed Godavari water at Dawaleswam and created water problem to Rabi – though excess water reached the dam was released in to Sea. To save the crop he got bore wells dugged in the River Godavari and supplied water to Rabi crop that gave bumper production.
Let the scientific reports should not indulge in such pathetic politrics. In Andhra Pradesh CBI is Chandrababu Naidu Bureau of Investigation; Judges for Chandrababu Naiudu Bureau of Judiciary. What we expect from scientific groups. It is great pity.
Thanks
Dr. S. Jeevananda Reddy
Formerly Chief Technical Advisor – WMO/UN & Expert – FAO/UN
Convenor, Forum for a Sustainable Environment
Dr. S. Jeevananda Reddy
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