Due to improper planning, tagging of State-funded Samuka project and lack of coordination between three State Government departments, an expenditure of Rs 158.16 crore went unfruitful under the ‘Augmentation of Drinking Water Supply System at Puri, revealed a CAG report. The Central Government had in July 2008 approved the Rs 166.90 crore project with 80:10:10 cost sharing basis between the Central Government, State Government and the Puri Municipality under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The project aimed to ensure supply of adequate quantity of piped, treated and quality water round the clock.
The State Government was to bear cost of acquisition of land amounting to Rs 17.75 crore involving acquisition of 409.09 acre private land and alienation of 143.31 acre Government land. The State Government tagged water supply to a State funded project Samuka beach at an estimated cost of Rs 59.33 crore to this project and accorded (July 2009) administrative approval for total project cost of Rs 243.98 crore. The execution of work involved three departments, Housing and Urban Development Department for execution of water supply works (Rs 83.83 crore), Revenue and Disaster Management Department for land acquisition and alienation (Rs 86.19 crore) and Water Resources Department for development of water source (Rs 142.40 crore).
Audit noticed that though Rs 158.16 crore, comprising PH works of Rs 27.80 crore, land acquisition cost of Rs 86.19 crore and source development work cost of Rs 44.17 crore, had been expended up to September 2014, yet the project scheduled for completion by December 2011 was not completed as of December 2014. By this time vital components like development of water source, construction of intake well, water treatment plant, raw water rising main had not been started due to deficiencies in execution of the project.
It revealed that delay in acquisition of 409.09 acres of private land lead to increase in land acquisition cost by Rs 68.44 crore from scheduled Rs 17.75 crore to Rs 86.19 crore. Similarly, non-alienation of Government land measuring 143.31 acres to the acquired private land led to time overrun. Revision of drawing and design of in-take well at WTP due to tagging the Samuka Beach water supply project to the JNNURM project resulted time overrun and extra cost of Rs 10.02 core. Due to time over-run, avoidable extra expenditure of Rs 7.59 crore was incurred on sinking of 15 tube wells and extension of distribution lines.
Similarly, factors like idling of completed service reservoirs and procured pipes, award of work without tender and allowing overhead charges twice and price escalation due to award of work without site being available lead to extra cost. “Thus, due to improper planning, tagging a state funded project (Samuka) and lack of coordination between three departments of Government and entire expenditure of Rs 158.16 crore remained unfruitful,” it said.