Planning departments' suggestion has come in the wake of the hike in the project cost from Rs 7,000 crore to about Rs 10,000 crore. "Such an exercise is necessary to ensure that there are no redundancies like standby pipelines, oversized pumps instead of booster stations, 12 instead of 24-hour pumping." The department has added that since these were technical issues, "competent technical advice will be needed as large savings were possible in these and similar areas.

Planning department said that while Maharashtra State Electricity Board (MSEB) and even Maharashtra Jeevan Pradhikaran could float their bond issues easily, "the MKVDC found the going difficult." Since various irrigation corporations have to raise Rs 2,100 crore in thecurrent year through bonds, the irrigation department in particular and the state government in general must look for deficiencies in compliance of the convenents attached to various issues.

These may include timely issue of security for the bonds, timely issue of bond certificates in lieu of letters of allotment, whether letter of allotment, interest on application and incentives were dispatched in time. "All these factors will have a bearing on MKVDC's rating (at present it has been rated as AA-(SA) and interest rates. Wherever delays has occurred in observing the covenents, it should be brought to the notice of the board of directors of the MKVDC," the department added.

The department has also asked the irrigation department to check up terms of the Bacchawant Tribunal award whether impounding of 598 thousand million cubic water of Krishna river itself will be sufficient or utilisation of impounded waters was necessary to sustain Maharashtra's claim. "If the latter is true, then a revised minimumprogramme will be necessary."

The irrigation department had prepared a "minimum plan" (July 20, 1998) to impound 158 TMC water by year 2000 (the previous Congress governments have succeeded in impounding 440 TMC water) projecting the requirement of funds for 1998-99 as Rs 2,007 crore on the plan side and Rs 266 crore on the non-plan side.

The planning department's note deserves importance especially when the state irrigation ministers Eknath Khadase had announced that the MKVDC has decided to defer the construction of canal and lift irrigation projects in the valley as the prority would be to harness the state's water share by 2000. He had added that nearly Rs 4,000 crore would be needed for canal construction.

MKVDC was also in news following the fast organised by the contractors in the wake of delays in the payment of Rs 588 crore. The state government ultimately intervened and made available Rs 200 crore as grant and another Rs 200 crore to be given by the state undertakings.

Sources said thatissues related to fund crunch, repayment, resource mobilisation, discrepancies if any in carrying out irrigation works, rehabilitation of project affected people will be discussed at a two-day review meeting convened by the irrigation minister Eknath Khadase on September 23 and September 24 here.