Polavaram: CAG Tells AP To Hold Talks With Chhattisgarh, Odisha

Audit flags delays in embankments, funding gaps and tender rule violations.

Update: 2026-03-06 17:40 GMT
CAG calls for faster land acquisition, surveys and transparent tendering. (File Image)

Vijayawada: The Comptroller and Auditor General of India in its report on Polavaram Irrigation Project has advised the AP government to address the submergence issues with Chhattisgarh and Odisha, in consultation with Polavaram Project Authority.

This, it said, is essential to speed up construction of the protective embankments, which could prevent submergence in those states.

In its ‘performance audit’ on the Polavaram project for 2017-18 to 2022-23, the CAG found that the construction of the protective embankments to avoid the submergence of villages in the two neighbouring states had not been commenced by the AP government. This is because a public hearing was not done by the two states even though the construction of embankments was originally planned to be completed by 2014-15, the CAG said.

The CAG noticed a drastic decrease in AP’s budgetary support to the project during 2019-23, compared to 2018-19. It is recommended to the state government to ensure adequate budgetary support and ensure optimum utilisation of allocated funds for timely completion of the project.

It is recommended that the state government expedite the socio-economic survey process and obtain approval for the Detailed Project Report from the Central Water Commission for the distributary network, to facilitate the approval of the revised cost estimate by the central government.

The CAG cited instances of awarding of works on a nomination basis, duly revising the estimate in violation of rules and also finalisation of contract agency by altering tender conditions and rules selectively, and awarding works to a single tenderer in contravention to rules for reverse tendering process.

It is recommended that the state government develop a fair and transparent tendering process to ensure compliance with prescribed rules and orders to promote competitive bidding.

The CAG recommended streamlining of the procedures relating to the Engineering Procurement Construction contracts, including the deliverables, scope and specification of work to avoid undue advantage to the contractors and a loss to the exchequer due to variations in quantities/number of structures.

It is recommended that the state government determine the extent of land under submergence in alignment with revenue records, the PDFs affected, and the land required for resettlement and rehabilitation activities, and submit a detailed report to the central government for early approval of revised cost estimate.

These apart, the CAG also recommended expediting land acquisition for R and R activities, to relocate the PDFs prior to impounding of water into the reservoir.

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