CAG audit on Kaleshwaram questioned

The CAG report had claimed that the anticipated post project benefits from agriculture under the project were overstated by the State government.

Hyderabad: The Comptroller and Auditor General of India (CAG) report on the Kaleshwaram project has come under question from different quarters.
As per the audit report, the cost of the project was likely to exceed Rs.1.47 lakh crore as against the initially estimated Rs 81,911 crore.

However, questions are being raised on why the CAG, which took into consideration the latest costs of works, latest electricity charges and latest land acquisition prices, failed to take into account the latest market rates of agricultural produce from the command area served by the project.

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“There was a remarkable increase in the prices of various agricultural crops? How fair is it to calculate the benefit cost ratio with old numerator and a latest denominator,” wondered Nayani Anurag Reddy on “X’.

The CAG report had claimed that the anticipated post project benefits from agriculture under the project were overstated by the State government. For the purpose of the benefit cost ratio calculation, the State government had put the net value of farm produce (post project) at Rs.15,107.64 crore whereas the CAG audit has worked it out to be only Rs.12,621.92 crore.

The CAG had considered the income from only the Kharif season on the plea that water was not likely to be available for Rabi crops. The hike in the prices of the farm produce from time to time was not taken into consideration, he pointed out.

While the State government had put the value of the revenue benefits from fisheries promoted by the project at Rs.1750 crore, the CAG scaled it down to a mere Rs.154 crore. The revenue from Industrial water supply from the project was projected by the government at Rs.3805 crore as against Rs.914.50 crore by the CAG audit, he added.