The Krishna Bhagya Jala Nigam Limited (KBJNL) has been hauled up by the Comptroller and Auditor General (CAG) for extending undue benefits to a contractor and for entrusting additional works at regular intervals on a non-competitive basis to the tune of 54.90 crore.
The CAG, which audited the performance of KBJNL in 2006-2010, has pointed out the glaring irregularities in the construction of a bridge-cum-barrage with needle gates across river Bhima at Sonthi village in Gulbarga district. The contract was awarded in 2003 with a contractor quoting Rs 18.70 crore. This was 41.55 per cent below the tender amount of Rs 32 crore and the scheduled time for completing the project was 2004. However, the company was subsequently awarded additional works amounting to Rs 54.90 crore and the project was completed only in Dec, 2009. The final cost of the entire project went upto 73.60 crore, the CAG pointed out.
After awarding the primary contract, the KBJNL had decided to convert the submersible bridge into a non-submersible bridge, at an additional cost of Rs 7.85 crore. Consequently, the construction of 3 meter piers to accommodate vertical crest gates added Rs 15.58 crore to the estimated cost. The erection of embedded parts of service and stop log gates added another Rs 5.64 crore to the project.
In 2006, the KBJNL decided to construct an extension to the downstream apron works up to 20 metres at a cost of Rs 6.16 crore and increase the quality of steel for the embedded parts at a cost of Rs 2.79 crore. The cost escalation due to revised rates for work done after the tender period was Rs 9.02 crore, while the extra cost for cement and steel and other extra costs was Rs 6.26 crore and Rs 1.62 crore respectively, the CAG pointed out.
Throughout, the KBJNL went on changing the project and awarding additional work to the same company. The change led to the final cost becoming more than 200 per cent of the original tender amount of Rs 18.70 crore. The then minor irrigation minister had impressed upon KBJNL the need to go for vertical gates, which are considered technically superior and suitable.