Varahi delay-Rs. 100 cr loss: Lokayukta

• Private company cheats government
• Electricity sold after free procurement of water
• Mentioned in Upa Lokayukta report

Kundapura: Delay in Varahi irrigation project has cost Rs. 100 crore loss to the government. In the 38 years of this project, not even a minimum of 1 km length of a canal has been completed, mentioned the former Upa Lokayukta Justice Subhash B. Adi in his report.

In February, the Upa Lokayukta conducted an investigation into the irregularities in the Varahi project and submitted the report in March. The government is scrutinizing the report, informed Human Resource Minister. The points of the report are with the newspaper.

Electricity production by procuring free water

According to the report, along with not finishing the canal to supply water from the dam, the water is being used to produce electricity through mini hydro electricity project and a private electricity company is profiting by selling the generated electricity to the government. In 2005, as the canal work was in progress, the state government gave permission to a private entity for a 12 MW mini hydro electricity project. In 2006, the same company was given permission for an additional 6MW electricity project.  

Since then MESCOM (Mangaluru Electricity Supply Company) has purchased electricity from the company by paying Rs. 49.89 crore. But, for the usage of water, no money was paid to the Water Department. There is no contract either,, it is being said.

Recommended for action

The Upa Lokayukta has recommended initiation of criminal and civil action against the officials responsible for the irregularities and also against the contractor for causing Rs. 100 crore loss to the states treasury.

Reason for delay

The time limit for the project is exceeding the limit. 3-4 years maintenance period has been extended to some 6-8 years. The investigation team has created a list for 44 different works to be done for an additional Rs. 180 crore. Inadequate evaluation of the work location, the delay in submission of the estimate after the handing over of the work location is the reason for this, mentions the report.

What the company has to say?

Only during the monsoon the water is being used to produce the electricity. But, it is not possible to produce the electricity when the flow of the river water is low. There is a 30 year contract with Karnataka Water Department Limited and MESCOM says the company.

Question in the Legislative Council

Durimg the session In the Legislative Council, MLC Pratapchandra Shetty asked question in regard to the Varahi report by the Lokayukta to which the minister replied that the report is under scrutiny.