Funds misuse: Maharashtra govt sits on Rs2,452cr scam

Even as the state government has shown concern about the poor rainfall in the drought-hit Marathwada, it has not taken any action against those responsible for the multi-crore scam in the region.
The Rs2,452-crore irrigation projects undertaken in Marathwada has met numerous hurdles because of wrong designs, leading to incomplete works.

The 11 barrages built downstream Jayakwadi dam on river Godavari in Jalna district in Marathwada is an example of financial mismanagement in the Ministry of Water Resources.
The project began in 2005 and has been left incomplete for lack of funds.

A government report, which has been kept under wraps since 2009, has highlighted how the project costs have escalated. The report states that the original expenditure of Rs1,100 crore has run into Rs2,452 crore. The administration still needs Rs500 crore to complete the work.

“The magnitude of the scam in projects in Marathwada beats all other scams,” said BJP MLA Devendra Fadnavis.

Citing the SM Kulkarni report that studied projects in the region, he said: “There is no justification as to why consent was given for barrages in the present location. The designs are faulty. They have devised ways to escalate the costs which cannot be justified.”

“The construction on land, which had solid rocks underneath, does not require deep trenches for the project. Yet, they have dug 5m deep instead of 2.5m, leading to escalation of project works.”
In some cases, the costs have been manipulated to extract more funds from the state government.

“The project began in 2005. By 2009, the government promised it would table the report on the projects. The report which pointed out massive financial and design irregularities have been hidden. The government did not place it before the state legislative assembly and council,” said Babanrao Lonikar, a local representative from the district.

Madhav Bhandari, a senior leader of the BJP, said: “It is a vulgar misuse of funds without execution of technical expertise. How can anybody approve the construction where there is no water in the dam.”

Flouting rules
In almost all the 11 projects undertaken by the government in Marathwada, environmental clearance from the Centre was not sought. It is mandatory for the state to get approval from the Union environment and water resources department before undertaking mega projects on rivers interlinked to other states.

Power hurdle

• There is acute shortage of power in the region, stalling big projects.
• When the government gave its sanction for the projects, it expected sustained power
• supply for the region.