CAG detects irrigation project cost overrun

Detecting time and cost overrun in 'Accelerated Irrigation Benefit Programme' projects in Odisha, Comptroller and Auditor General of India has said financial implication by way of cost escalation and other deficiencies worked out to Rs 3,157.97 crore.
Performance Audit showed that despite being pointed out earlier, projects still suffered time and cost overrun due to delay in acquisition of land, finalisation of drawing and design and clearance of site, said CAG report on economic sector for the year ended March 2014, which was submitted in the assembly today.
With escalating expenditure on projects, proportion of benefits likely to accrue decline with some projects running the risk of becoming unviable, it said adding instances of calculation of Benefit Cost Ratios (BCRs) not holding good were also noticed.

Extra expenditure on account of estimates deviating from SoR (Schedule of Rates), deficiencies in tendering process was noticed, while monitoring and internal conrol needed improvement, the CAG report said.
Financial implication by way of cost escalation and other deficiencies worked out to Rs 3,157.97 crore and as a resut of delay in completion of projects, people of the state were deprived of assured irrigation facility to that extent, CAG said in its report.