Govt to shelve Kandi Canal Project due to unprecedented cost escalation

*In-experienced contractor allotted work on ‘political pressure’

Mohinder Verma
JAMMU, July 13: Government is contemplating to shelve Kandi Canal Medium Irrigation Project in Doda district as its cost has registered unprecedented escalation due to abandoning of work during the past several years owing to disputes with the contractor, who will be issued notice for return of Rs 4 crore mobilization advance within next some days. Moreover, it has come to the fore that this project was allotted to the in-experienced contractor under the political pressure and without following the prescribed rules.
Official sources told EXCELSIOR that Kandi Canal Medium Irrigation Project was conceived in the year 2006 with the objective of providing irrigation facilities to the farmers in Thathri tehsil of district Doda and accordingly it was submitted to the Union Government for funding under Accelerated Irrigation Benefit Programme (AIBP) whereby loan assistance is provided to the States for construction of major/medium irrigation projects.
In the year 2007, the project was approved by the Planning Commission and Central Water Commission and in the year 2008 the work was formally started by a contractor of J&K, who was allotted the project albeit without ascertaining his experience in the field and following the prescribed rules/guidelines, sources said.
As per the Detailed Project Report (DPR), 32 kilometers of canal was to be constructed in three phases in order to lift water from Kagunegad nallah and provide the same to the farmers for irrigation purpose. After completion of some work, disputes emerged between the contractor and the Irrigation and Flood Control Department over financial aspects as a result of which the work came to a grinding halt.
Moreover, the disputes led to litigations in the court of law and subsequently the work remained abandoned for many years. As those at the helm of affairs in the Irrigation and Flood Control Department never tried to resolve the disputes to ensure resumption of work, the cost of the project continued to escalate and in the recent past the same was worked out at Rs 136 crore, which is five times more than the actual cost of the project.
“Few days back a committee headed by Secretary, Department of Irrigation and Flood Control Parvez Malik found it un-viable to complete the project at the revised cost of Rs 136 crore on varied grounds including cost benefit ratio of the project”, sources said, adding “the committee has decided to terminate the contract for execution of project with the contractor and examine afresh the viability of project particularly from cost benefit ratio point of view”. The cost benefit ratio is an indicator to summarize the overall value for money of a project or proposal.
They disclosed that a notice is being served to the contractor for return of mobilization advance to the tune of Rs 4 crore, which was given to the contractor not against bank guarantee but against plant and machinery in blatant violation of the prescribed norms/guidelines under political pressure.
Moreover, the Government is contemplating to shelve the project once for all because in all probability it would not be possible to complete the project. First, Government doesn’t have resources to meet the escalated cost of the project and secondly the project may have to go through many stages of obtaining No-Objection Certificates keeping in view strictness of Supreme Court in granting clearance for diversion of forest area for non-forestry purposes.
“The project is testimony of the fact that interests of the contractor were more dearer to those who allotted the project without keeping in view the experience and expertise for execution of such nature of projects than the interests of the farmers”, sources said.
When contacted, Secretary Department of PHE, Irrigation and Flood Control, Parvez Malik confirmed that decision has been taken to terminate the contract and get back Rs 4 crore mobilization advance from the contractor. “Though cost benefit ratio of the project in the light of the escalated cost of Rs 132 crore is yet to be worked, there are grim chances of Kandi Canal Project remaining feasible any more”, he said in response to a question, adding “cost benefit ratio of the project, which was worked out seven-eight years back cannot be the same at present particularly when the project cost has escalated to Rs 132 crore”.
Replying to another query, he said, “it is a fact that the contractor had no experience in execution of such projects”.