Date:03/02/2008 URL: http://www.thehindu.com/2008/02/03/stories/2008020351610300.htm

Andhra Pradesh

Irregularities alleged in LI scheme

Correspondent

MAHABUBNAGAR: Telugu Desam Polit Bureau members Nagam Janardhan Reddy, Ravula Chandrasekhar Reddy and Manda Jagannath alleged that over Rs. 140 crore have been swindled by contractors of Kalwakurthy Lift Irrigation (KLI) by evading custom and excise duties in importing motor pumps to be erected in the scheme.

Speaking to mediapersons here on Friday night, the TDP leaders said that over Rs.700 crore worth pumpsets that were meant for Kalwakurthy Lift Irrigation scheme for all the three stages were being imported from foreign countries.

They said that customs and excise duties were exempted were used for recycling of sewage water.

The Kalwakurthy Lift Irrigation contractors have obtained a letter with the connivance of irrigation officials and district officials that the pump motors that were being imported for KLI scheme wore of that kind which could be used for recycling of water, they alleged. They also alleged that the KLI contractors who are using the gravel and sand that were accumulated by digging canals for constructing structures of KLI were also evading to pay Sienerage changes to the local body institutions and pocketing crores of rupees.

The TDP leaders demanded a thorough enquiry over these allegations by vigilance and enforcement department. The findings of vigilance and enforcement department that KLI contractors have swallowed Rs.4.7 crores by showing the sand that was unearthed while digging canals as rock was a tip of a ice berg.