₹15,297 crore spent on Yettinahole water project, target districts still without drinking water

Who it concerns: Government of Karnataka, specifically Visvesvaraya Jala Nigam Limited (VJNL) and the project intended to supply water to Chikkaballapura and Kolar districts.

What the auditor found

• Project cost escalated from ₹8,323.50 crore (2012) to ₹23,251.66 crore (2023).
• ₹2,965.77 crore worth of Phase-I assets (pumps/motors) were left idle because Phase-II canal works were incomplete.
• ₹7,954.63 crore in funding was uncertain as of March 2024, with government providing only 25-54% of budget requirements between 2018-19 and 2022-23.
• ₹621.45 crore in additional costs were incurred due to changes in the Balancing Reservoir location and capacity.
• Water yield estimates in the Detailed Project Report (32.15 TMC) were found to be higher than actual recorded flows (7.20 to 24.70 TMC).
• 67% of works (₹14,805.80 crore) were awarded to only seven contractors, with one contractor receiving 11 contracts worth ₹5,216.58 crore.
• CAG recommended VJNL adhere to the new completion deadline of November 1, 2026, prioritize the Balancing Reservoir, and recover excess payments to contractors.

Also in the document

• Despite spending ₹15,297 crore over 12 years, the project had not yet provided drinking water to the target districts as of the audit period.
• No target completion date was specified in any of the original Detailed Project Reports until October 2023.
• 80% of works were awarded to contractors without evaluating their financial capability or work experience.
• Third-party inspection was delayed by four years, preventing critical quality tests (ultrasonic, dye penetration, radiography) on already laid pipes.