Lokayukta lens on Rs 882-crore tank-feeding project

Information available with DH showed that tenders were awarded despite an exorbitant increase in bids submitted for the project

The Lokayukta has sought documents on the Rs 882.09-crore project to fill 74 tanks in Kudligi with Tungabhadra water after officials dodged RTI queries, while information available with DH showed that tenders were awarded despite an exorbitant (32%) increase in bids submitted for the project.

The project was approved in June 2021 to rejuvenate the lakes and end the drought situation in several parts of Kudligi in the Vijayanagara district. It was taken up by the Karnataka Neeravari Nigam Limited (KNNL) of the Irrigation Department.

In a letter dated May 18, the Lokayukta Deputy Superintendent of Police in Hospet asked KNNL’s executive engineer for the Singatalur lift irrigation project to submit full information on the project. The move came after officials failed to provide details of the project and dodged requests for documents sought under the Right to Information Act.

Officials first didn’t reply to the query. “When an appeal was filed with the superintendent engineer of the division, a reply was given in which the officials did not provide the certified copies of the documents but tried to give a summary of the project, which is misleading,” said H M Venkatesh, an activist.

The reply by the executive engineer showed an exorbitant escalation of costs. The original project was divided into two packages while inviting tenders in June 2021. Package 1 consisted of feeding water to 16 tanks at an estimated cost of Rs 461.47 crore and Package 2 to fill 58 tanks at Rs 207.08 crore.

However, when tenders were awarded a month later, in July 2021, the cost for Package 1 had gone up to Rs 617.43 crore, a 34% increase compared with the estimated cost. Similarly, Package 2 was awarded at a cost of Rs 262.66 crore, a 26.83% increase compared with the estimated cost.

As per a government circular issued in December 2022, tenders where bidders quote 10% more than the estimated amount have to be cancelled.

Last month, the Finance Department noted that many tenders were awarded in violation of that circular, and further tightened the screws by limiting the tender premium to 5%. KNNL officials said the tender was awarded after ‘due process'.

“Such matters are taken to the expenditure committee, zonal committee and then the board meeting. After clearing all the stages, the tender was awarded. The escalation of cost between old estimation for the tender and work order is natural,” a senior engineer said.

When it was pointed out that there was only one month’s gap between the estimation and the work order, the official said the full information would be available to the executive engineer concerned.

Prakash Aihole, the executive engineer, was not available for a response.

Venkatesh told DH that the reluctance of the officials in sharing the documents hints at a larger problem. “Prima facie, its seems all the people are involved in the irregularities. There needs to be a detailed investigation into the entire process,” he said.

Sources in the Lokayukta said they have not received any response from the KNNL though it has been three weeks since they sought the documents of the project.