The Comptroller and Auditor General of India has said that the project cost of Kaleshwaram project is likely to exceed ₹1.47 lakh crore as against the ₹81,911 crore projected to the Central Water Commission and the capital cost of irrigation works out to ₹6.42 lakh an acre.
The project cost was understated in the detailed project report due to preparation of estimates at old price levels and non-inclusion of provision for price escalation. This, coupled with subsequent changes made in the project works, resulted in the cost of works increasing from ₹63,352 crore to ₹1.02 lakh crore.
This was on account of likely cost of works relating to land acquisition, rehabilitation and resettlement, interest during construction and others which are yet to be entrusted, the CAG said in the performance audit report on Kaleshwaram project tabled in the Telangana Legislative Assembly on Thursday.
