Financial crunch hamper Krishna Valley irrigation projects

Mumbai, May 6 (UNI) 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.

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