Vijayawada: The Comptroller and Auditor General (CAG) report has found fault with the way Pattiseema project was executed and estimated that an expenditure of Rs 351.40 crore could have been avoided, in case norms were properly followed.
The CAG stated that the government had to bear Rs. 199 crore of additional burden following the relaxation in tender premium maximum limit and also handing over works with extra tender premium, without completing the distributaries of Polavaram lift irrigation scheme.
Though there is no necessity, the constructions pattern was changed resulting in which an additional burden of Rs 106.17 crore was registered, and despite having discount over pipes, Rs 32.01 cr was paid back to the contractor, which could have been an ‘avoidable expenditure’, the CAG observed.
It also found that the contractor got an undue benefit, as he was paid Rs 14.22 crore towards as labour welfare tax by mistake, though there is no such agreement in Polavaram lift irrigation scheme. The CAG stated that all put together, an avoidable expenditure of Rs 351.40 crore could be saved, in case proper norms were followed.