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Performance
Andhra Pradesh

Report 4 of 2025 - Report of the Comptroller and Auditor General of India on Polavaram Irrigation Project pertaining to Government of Andhra Pradesh

Date on which Report Tabled:
Fri 06 Mar, 2026
Date of sending the report to Government
Thu 14 Aug, 2025
Government Type
State
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Sector Transport & Infrastructure

Overview

Polavaram Irrigation Project (PIP) is a multipurpose project on the river Godavari near Ramayyapeta Village of Polavaram Mandal about 42 km upstream of Sir Arthur Cotton Barrage, where the river emerges out of the last range of the Eastern Ghats and enters the plains in erstwhile West Godavari District of Andhra Pradesh State. Project envisages construction of a dam to create an ultimate irrigation potential of 2.91 lakh hectare. The project also envisages generation of 960 Mega Watt of hydro power, drinking water supply to a population of 28.50 lakh in 540 villages and diversion of 80 Thousand Million Cubic feet (TMC) of water to Krishna River basin. In a way, the project heralds a wide range of developmental activities across the State of Andhra Pradesh.

Initially, the construction of the project began in 2004-05 with the funds of the Government of Andhra Pradesh (GoAP). Subsequently, in 2014, it was declared as a National Project as per Section 90 Part IX of the Andhra Pradesh State Re-organisation Act, 2014. The Act mandates Government of India (GoI) to the project and obtain all requisite clearances including environmental, forest, and rehabilitation and resettlement norms. In pursuance of the Act, Ministry of Water Resources or Ministry of Jal Shakti, GoI constituted a governing body to Polavaram Project Authority (PPA). The execution of civil works of all components of the Project, Land Acquisition (LA) and Rehabilitation & Resettlement (R&R) activities are being carried out by Water Resource Department, GoAP. The expenditure incurred by GoAP through its budgetary resources is being reimbursed by GoI. However, the cost of Polavaram Hydro Electric Project (PHEP) would be wholly borne by GoAP.

The present Performance Audit was undertaken between June 2022 to June 2023 covering the period 2017-18 to 2022-23.

This report has seven chapters. Chapter I provides an overview of the Project, its journey since inception, declaration as a National Project, Status of Project and the origanisational setup of the departments / organisations involved in execution of the project. Describes the basis of audit and approach to the Report.

Chapter II covers broad view of the Funding pattern and Budgetary support, component wise expenditure, pendency of bills and Central Assistance to the project. It also gives the overall status of the project and the components involved alongwith the environmental aspects noticed.

Chapter III deals with the construction of Headworks and Powerhouse. It explains the inadequacies in the planning process and execution of the headworks alongwith the deviations from the laid down rules observed in the tendering process, advance procurement of material, etc.

Chapter IV covers the aspects of the planning and execution of canals (both RMC and LMC), highlighting the non-approval of DPR for the distributary network, approval for excess quantities despite no change in the basic parameters of the canals and non-disposal of excavated earth.

Chapter V explains the process of Land acquisition highlighting the in passing land awards leading to increase in the project cost, inconsistencies in assessment of land, discrepancies in passing of land awards and subsequent payments to the landowners, etc.

Chapter VI covers the aspects relating to Rehabilitation & Resettlement of the PDFs, highlighting the slow progress of R&R process, incorrect identification of habitations between contours, non-completion of Socio-Economic survey in the habitations, etc.

Chapter VII presents the outcome of the beneficiary and amenities survey undertaken, during the process of audit, in the habitations and R&R colonies. Survey highlights the poor quality of construction, inconsistencies in payment of monitory benefits, non-provision of certain amenities in the R&R colonies, etc.

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