CAG Report Reveals Increased Costs but No Additional Benefits for Kaleshwaram Project

The Comptroller and Auditor General (CAG) has disclosed that despite the increased expenses due to re-engineering and modifications in the Kaleshwaram project, no additional benefits have been realized. The changes have rendered some previously completed works redundant, resulting in a loss of Rs. 765 crores, as reported. The project unnecessarily undertook the third phase of works, leading to an additional expenditure of Rs. 25,000 crores. This report was submitted to the assembly by the government on Thursday.

The CAG has accused the Water Resources Department of awarding contracts for 17 works valued at Rs. 25,000 crores before the approval of the Detailed Project Report (DPR). The capital cost per acre for irrigation water through the Kaleshwaram project is reported to be Rs. 6.42 lakhs, as per the CAG's findings. The expected benefit-to-cost ratio of the project was estimated at 1:51, but it currently stands at 0.75, with a likelihood of further decrease. 


Additionally, the report mentions that a comprehensive seismic study was not conducted before the construction of the Mallanna Sagar reservoir.