Telangana’s 20 Irrigation Projects’ Costs Double Due to Non-Completion, Reports CAG

The cost of 20 irrigation projects that were started between 1983 and 2018 in Telangana has doubled from over Rs 1 lakh crore to Rs 2 lakh crore as of March 2023, due to non-completion, as mentioned in the CAG report. According to the report (for 2022-23) by the Comptroller and Auditor General (CAG) presented in the state legislature, the non-completion of these projects has deprived the state of the intended benefits of economic growth.

The report also pointed out that there was no assurance on returns from the investments in irrigation and flood control, as the state government did not disclose financial results of any of the irrigation projects. The auditing watchdog stated, “There were 20 incomplete irrigation projects that were supposed to be completed by the year 2023.

The original cost of these projects has increased from Rs 1,02,388 crore to Rs 2,06,977 crore, which is an escalation by Rs 1,04,589 crore (102 per cent).”

As of March 2023, an expenditure of Rs 1,73,564 crore has been incurred on these projects. Additionally, the government has a pending liability of Rs 8,971 crore in respect of 13 incomplete irrigation projects. The CAG report also highlighted the inordinate delays in the completion of these projects, which not only increase the financial burden on the government, but also deprive the public of the intended benefits.

The report also mentioned the case of the Hyderabad Urban Agglomeration, where there was no expenditure despite Rs 10,000 crore being proposed in the 2020-21 budget for the Musi River purification and Musi River Front Project. Although an estimated Rs 50,000 crore was said to be required for the next five years, the entire provision of Rs 10,000 crore remained unutilized during 2020-21.

Moreover, the budget for the following years (2021-22 and 2022-23) was significantly reduced, and the reduced provision also remained unutilized.