Delay in Telangana Irrigation projects costs state additional Rs 1 lakh crore, shows CAG report – Economy News

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The cost of 20 irrigation projects in Telangana, which began between 1983 and 2018, has doubled to Rs 2 lakh crore as of March 2023 due to delays in their completion, according to a report by the Comptroller and Auditor General (CAG) released on Friday.

The CAG report for for the fiscal year 2022-23, presented to the state legislature, highlights that the original cost of these projects has surged from Rs 1.02 lakh crore to Rs 2.07 lakh crore, marking an increase of Rs 1.05 lakh crore (102%). The report also notes that Rs 1.73 lakh crore has already been spent on these projects, with an additional Rs 8,971 crore in liabilities for 13 incomplete projects.

“Inordinate delays in the completion of these projects/works not only keep the financial burden of the government increasing year after year, but also depriving the public of the intended benefits,” the CAG report opined.

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The report also points out that there is no assurance of returns from these investments as the state government has not disclosed the financial outcomes of any irrigation or flood control projects.

Additionally, the report also criticised the handling of the Hyderabad Urban Agglomeration projects.

Despite a proposed budget of Rs 10,000 crore for the Musi River purification and Musi River Front Project in 2020-21, none of the funds were utilised. The budget allocation for these projects was subsequently reduced to Rs 2,600 crore in 2021-22 and further cut to just Rs 200 crore in 2022-23, with the reduced amount also remaining unspent.



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