RS 799 CR TUNNEL PROJECT IN MP STALLED FOR 13 YEARS

In January 2008, the Madhya Pradesh government awarded the tender for the construction of the Sleemanabad tunnel, part of the Bargi Diversion Project-a significant irrigation initiative in the Narmada Valley.

- ABHINANDAN MISHRA

• The promised completion was in 2011. Cost has doubled.

The contract stipulated a completion timeframe of 40 months, with an expected finish date of April 2011. Initially, the project was awarded for Rs 799 crore. However, after granting at least six extensions, total payments to the private contractor have surged to nearly Rs 1,454 crore. Despite being due for completion over 13 years ago, the project remains several months away from finishing.

How was the project, which was to be completed within three and a half years, allowed to remain incomplete more than a decade later? Why has the government paid nearly double the original tender amount? These questions have generated no answers, leading to concerns that public exchequer funds were misused by corrupt government officials in connivance with private entities who continue to take money for a project that was to be completed 13 years ago.

In December 2007, the Narmada Valley Development Authority (NVDA), an organization of the Madhya Pradesh government constituted in 1985 for planning water resources development in the Narmada basin and expeditious implementation of projects, floated a tender for the "Sleemanabad canal project," which involved constructing a 12 km underground 10-meter diameter tunnel and a 13 km open canal in Katni, through which water from the Bargi dam would pass. The initial cost of this turnkey contract was Rs 640 crore, and when it was finally awarded to a joint venture between Patel Engineering and SEW Infrastructure, the project cost was set at Rs 799 crore.

In the wake of receiving this contract, the share price of Patel Engineering rose by 3% on 24 March 2009.