Hyderabad: According to the CAG, the cost of the Kaleswaram project escalated due to re-engineering and alterations without yielding any additional benefits. These modifications rendered some previously completed works ineffective, resulting in a financial loss of Rs 765 crore, as stated in the report. Moreover, the unnecessary implementation of the third TMC of the Kaleswaram project incurred an additional expenditure of Rs 25,000 crore. Consequently, the government presented the CAG report in the Assembly on Thursday.
The CAG further accused the irrigation department of assigning 17 projects worth Rs 25,000 crore to contractors before the approval of the Detailed Project Report (DPR). The report highlights that the Kaleshwaram project’s capital expenditure on irrigation amounts to Rs 6.42 lakh per acre, with the estimated ratio of project benefits to costs being 1:51. However, the actual ratio stands at 0.75:1, indicating a likely further decrease. Additionally, the CAG report pointed out the lack of a comprehensive earthquake-related study prior to the construction of Mallanna Sagar.