Findings and Recommendations of PAC (Hindi)

The Public Accounts Committee (2006-07) of the Chattisgadh Assembly, in its 64th Report, tabled on 16th March 2007 has recommended that the Agreement and Lease Deed between Madhya Pradesh Audhyogik Kendra Vikas Nigam Limited (MPAKVN or MP Industrial Centre Development Corporation Ltd, now Chattisgadh Rajya Audhyogik Vikas Nigam CRAVN) and Radius Water Limited for the Sheonath Water Supply BOT project must be cancelled within one week of tabling of the Report and that all the assets and the ownership of the water supply project must be taken back by CRAVN.

Findings and Recommendations PAC - Hindi

The original Findings and Recommendations (Pages 56–63 of the Report) in Hindi are placed here in pdf format.

Brief Background

It may be recollected that in 2001, Radius Water Limited, a local private company was given a concession to build a dam across Sheonath river, for supplying water to the industrial estate of Borai, near Durg city in Chattisgadh on Build-Own-Operate basis. Once the contract was signed, the owner asserted his rights to the 23.6 km water reservoir, banned the locals from using the waters, and was supported by the state in this. The villagers who used to fish in the river, who used the river ghats for bathing, who took water from the river for growing vegetables and small crops and depended on the river for other needs lost access to the river. Intense local struggles, supported by nation-wide campaigns challenged this.

The project was also criticised widely for its extremely skewed terms unduly favouring the private party. Among others, its take-or-pay clause, that required the Chattisgadh Government to pay for 4 MLD of water regardless that demand was less than this, was seen as causing severe losses to the Government since the inception of the project till date as the demand for water has been far lower.

It was the wide criticism of the project in the media during December 2002 that prompted the Public Accounts Committee, headed in 2005-6 by Dr. Ramchandra Singhdeo and in 2006-07 by Shri Ravindra Choube to take cognisance of the matter, and in its meeting of 6 January 2003, it decided to look into the project. It submitted a note to the Speaker of the House on 9 January 2007 requesting permission to examine the matter. It proceeded with the enquiry on getting permission from the Speaker.

For detailed note in English, Click Here