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CAG Report Exposes Pattiseema Scam!

CAG Report Exposes Pattiseema Scam!

In a damning indictment of the Chandrababu Naidu government, a report prepared by the Comptroller and Auditor General (CAG) of India found serious irregularities in the awarding of the Pattiseema project and its execution.

The audit report of CAG was tabled in the Assembly. The significant features of the report detailed in the English news daily The Hans India, are as follows:

When the TDP government invited bids for the project, the cost of the project was valued at Rs 1170.25 crore. By the time it was awarded to Megha Engineering and Infrastructures Limited Hyderabad, the cost was revised to Rs 1700 crore. 

The government said the life cycle of the project was 20 years but Pattiseema would become redundant in 2019 once Polavaram is completed. Therefore, the life cycle of the project is only 3 years.

Unnecessary changes were made to construction methodology which resulted in additional expenditure of Rs 139 crore thereby benefitting the contractors.

Incorrect reimbursement of Labour Welfare Cess, though not required under the agreement, led to undue benefit of Rs 14.22 crore to the contractors. 

Relaxation of ceiling on tender premium and award of work at higher premium without completion of Polavaram right main canal and its distributary system resulted in an avoidable burden of Rs 199 crore. 

Only 11 of the 24 pumps of Pattiseema project were operated during the floods in July-September period in 2016 due to lack of canal system of adequate carrying capacity. Therefore, due to improper planning, the objectives of the project could not be attained even though it was completed.

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