Financial crunch hamper river Krishna projects

Mumbai, May 6: Financial crunch continues to hamper the completion of pending irrigation projects in the Krishna Valley to create irrigation potential of 21.58 lakh hectares.

Despite having a separate Maharashtra Krishna Valley Development Corporation (MKVDC) since 1996 to utilise its share of water before May 2000, the state has failed to complete all the projects within the stipulated time and utilise the 594 TMC water from the Krishna river allocated to it by the Krishna Water dispute tribunal (KWDT).

In order to tide over regional irrigation imbalance and backlog, the State Governor, who is empowered constitutionally to ensure removal of irrigation backlog, directed the government to ensure integrated irrigation funds to be distributed equitably. the MKVDC was not eligible to raise funds from the open markets through bonds or debentures, sources in the irrigation department told UNI.

As per the rules of the corporation, the contribution of the state government shall not be less than Rs 3500 crore and the remaining amount is to be raised by the corporation through bonds in the open market. This was not possible due to the Governor's directives.

Prior to the establishment of the Maharashtra Krishna Valley Development Corporation (MKVDC), the irrigation potential of 9.85 lakh hectares had been created and the remaining irrigation potential of 11.73 lakh hectares was to be created through execution of irrigation projects in the Krishna Valley. Additional irrigation potential created from June 1996 to June 2005 was only 4.79 lakh hectares.

The balance of 6.94 lakh hectares is to be tapped till June 2010.

The estimated cost of completing the projects in April 1996 when the MKVDC was set up was Rs 7100 crore. The update cost of the same in 2005 was approximately Rs 22000 crore.

The updated cost included the cost of various components like dams, canals, land accquisition, rehabilitation, lift irrigation schemes and the Government was unable to provide grants on a large scale.

2004-05 was the worst affected year. The 39 major, 41 medium and 265 minor irrigation projects which were in progress at the beginning of 2004-05 was not completed since then. In 2004-05, only four minor irrigation projects were completed.

Sources said during the year 2004-05, the MKVDC received Rs 582.53 crore for project work, Rs 246.14 crore for salaries of employees of the corporation, Rs 387.27 crore for redemption of bonds, Rs 397.28 crore for payment of interest on bonds. As per the approval of the Governor, the state government sanctioned Rs 469.94 crore to the corporation to face scarcity works. This includes amount spent on interest on bonds received by way of water charges and balance of grants for previous year.

Out of the above grants, the corporation spent Rs 724.19 crore on projects,which include land accquisition and rehabilitation works.

Rs 210.11 crore on salary, Rs 387.84 crore on redemption of bonds,Rs 433.01 crore on payment of interest of bonds, Rs 405.58 crore on scarcity works. This includes amount spent on interest on bonds received by way of water charges and balance of grants for previous year.

The river Krishna flows through three states - Maharashtra, Karnataka and Andhra Pradesh. Krishna Water Dispute Tribunal (KWDT) gave its award in May 1976 regarding allocation of Krishna basin water. As per the provision of KWDT award, Maharashtra is entitled to utilise 594 TMC of water. The award was subject to review any time after May 2000.

The jurisdiction of the corporation lay fully in districts of Pune, Satara, Sangli, Kolhapur, Solapur and three districts of Beed,Osmanabad and Ahmednagar partially.

The 927 projects in the Krishna basin were proposed to be completed by May 2010 and will create 21.58 lakh hectare irrigation potential. The irrigation potential created upto June 2004 is 14.08 lakh hectare. The incremental irrigable command area by June 2005 is actually 56,000 hectare.

At the time of establishment of the MKVDC, eight major, 34 medium, 464 minor irrigation projects were already completed. As on April one 1996, 18 najor, 24 medium and 153 minor irrigation projects were under construction. Storage works of seven major, 20 medium and 336 minor irrigation projects have been completed by the corporation during the period from 1996-97 to 2004-05.

840 irrigation projects out of 927 have been completed at the end of March 2005. As per 1994-05 price level, the estimated cost for completing the remaining projects after April one,1996 was pproximately rs 7100 crore.

Sources said it is planned to create irrigation potential of 21.58 lakh hectare by completing all the 927 projects in the Krishna valley. Similarly, water storage on account of construction of dams envisages 25 per cent reservation for non-irrigation purposes. This 25 per cent reservation includes 15 per cent for domestic water use and ten per cent for industrial use.

In the last six years, 449 drinking water supply projects have been accelerated.Similarly, 17.29 TMC of water has been made available for supply of drinking water to 1810 villages. During the last four years, live storage of 97 TMC has been created by construction of dams. Top priority is given to drinking water supply rather than to water supply for irrigation purpose.

It is anticipated that population of the state by the year 2020 shall be to the tune of Rs 12.50 crore. Out of this total population, 2.90 crore is located in the Krishna valley. During the period of last five years, facility of drinking water is provided to a population of 1.4 crore. It means that eight per cent of population (33 per cent of thepopulation in eight districts of Krishna valley has been provided with the drinking water facility on priority through dams, canals, lift irrigation schemes, rivers within a span of five years.

Sources said that rehabilitated gaothans have been provided with all civic amenities.

UNI