Studied Silence of Odisha CM Mohan Charan Majhi on Larsen and Toubro, Megha Engineering and Infrastructures Ltd, KEC-Kaveri for their Gross Irregularities in Various Drinking Water Projects during Naveen Patnaik Tenure Raised Many Eyebrows

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CM Mohan Charan Majhi -Ex CM Naveen Patnaik-file

By Our Correspondent

BHUBANESWAR: Naveen Patnaik served as Chief Minister of Odisha from 2000 to 2024, during which his government prioritized water supply initiatives as part of broader rural and urban development goals. Key programs included the BASUDHA (Buxi Jagabandhu Assured Drinking Water to All Habitations) scheme for rural areas, the Sujal-Drink from Tap Mission for urban zones, and integration with national schemes like Jal Jeevan Mission.

These aimed to provide piped water connections, improve water quality, and achieve 24×7 supply in select areas. Investments ran into thousands of crores, with a focus on mega piped water projects. However, the involvement of non-Odia (out-of-state) companies in executing these projects drew scrutiny, including allegations of favoritism, corruption, and uneven implementation. Below is a detailed analysis of non-Odia companies engaged and the on-ground outcomes, based on available reports and data.

Non-Odia Companies Engaged in Drinking Water Projects:

During Patnaik’s tenure, several large-scale drinking water projects were awarded to companies from outside Odisha, often through tenders under the Rural Water Supply and Sanitation (RWSS) Department, Panchayati Raj and Drinking Water Department, and the Water Corporation of Odisha (WATCO). Critics, including RTI activists, alleged that contracts worth over Rs 35,000 crore were given to 17 non-local firms, bypassing local contractors and leading to potential irregularities.This was part of a push for rapid infrastructure scaling, but it sparked debates on transparency and local economic benefits. Key examples include:

Larsen & Toubro (L&T), Chennai/Mumbai-based: Awarded a mega drinking water project in Bargarh district in 2020 under the BASUDHA scheme. The contract was worth Rs 508 crore and involved supplying piped water to multiple blocks. The project aimed to benefit over 2 lakh people and was slated for completion in 24 months. L&T, a major infrastructure conglomerate, has handled similar water projects across India but faced criticism in Odisha for being a non-local entity amid allegations of cost overruns in other states.

KEC-Kaveri  ,Warangal-based (Telangana): Secured another Bargarh district project in 2020, valued at Rs 215 crore, also under BASUDHA. This involved piped water infrastructure for rural habitations and was part of the same cabinet approval as L&T’s contract. The firm specializes in engineering and construction, with a focus on water and power sectors.

Megha Engineering & Infrastructures Ltd (MEIL), a Hyderabad-based (Telangana): company, was one of the prominent non-Odia (out-of-state) firms that secured multiple significant contracts for drinking water projects in Odisha during Naveen Patnaik’s tenure as Chief Minister (2000–2024). MEIL is a major infrastructure player known for large-scale water, irrigation, and power projects across India, and it actively participated in Odisha’s rural and urban water supply initiatives, including under schemes like BASUDHA (Buxi Jagabandhu Assured Drinking Water to All Habitations), Jal Jeevan Mission, and bulk supply projects.

Key Drinking Water Projects Awarded to MEIL in Odisha:  MEIL’s involvement spanned both urban bulk supply and extensive rural piped water schemes. The company highlights its work on its official website and social media, positioning these as successes in providing safe, potable water to rural and urban areas. Notable projects include:

Bhubaneswar Bulk Water Supply Project (Completed around 2017): This was a pioneering annuity-based Public-Private Partnership (PPP) model in India for drinking water. MEIL constructed two water treatment plants (69 MLD and 83/89 MLD capacities), intake wells, pump houses, reservoirs, and over 220 km of pipelines. It sourced water from the Mahanadi River, purified it, and supplied it to industries, municipalities, educational institutions (e.g., IIT-Bhubaneswar, NISER), and industrial parks in and around Bhubaneswar. MEIL handles maintenance for 25 years post-completion.

Other Notable Awards:

In 2018, MEIL was selected for fluoride-affected areas in Nuapada district (Rs 370 crore project for piped supply). Various rural schemes tendered in districts like Nayagarh, Bargarh, Khordha, and Kalahandi (part of broader approvals worth hundreds of crores in 2019–2022).

These contracts were awarded through tenders by the Panchayati Raj and Drinking Water Department (earlier RWSS Department) and aligned with state and national missions. MEIL’s footprint in Odisha’s water sector was substantial, with the company claiming to have rewritten rural water supply stories in the state through these initiatives.

Multiple Rural Piped Water Supply Schemes (RWSS): MEIL executed 21 rural water supply projects across 13 districts, including Bhadrak, Sundargarh, Jajpur, Keonjhar, Sambalpur, Dhenkanal, Sonepur, and others. These align with Jal Jeevan Mission goals and involve: Construction of water treatment plants, extensive distribution networks, overhead tanks, groundwater balancing reservoirs, and pipelines.

Specific examples: Projects in Dhenkanal (treatment plants and networks), Keonjhar (three schemes in Anandapur, Saharapada, and Ghasipura blocks), Sundargarh (rural piped supply), Bhadrak (mega project for saline-affected areas, sourcing up to 86 MLD from Kharasrota River), and Sonepur (covering over 600 villages with three treatment plants and 2,025 km of pipelines).Some of these were under BASUDHA or similar rural schemes, with six projects nearing completion or handover as per company updates.

Criticisms and Controversies:

While MEIL promoted these as transformative (like providing clean water to thousands of villages and reducing reliance on contaminated sources), there were allegations of favoritism and irregularities:

In 2021, reports and activist claims accused the department of showing “undue favour” to MEIL in BASUDHA-related rural water supply tenders, suggesting preferential treatment for the Hyderabad firm over local or other bidders.

Some projects faced environmental or diversion concerns (like Kharasrota River sourcing in Bhadrak, with claims of potential misuse or inadequate safeguards).

Broader scrutiny of out-of-state contractors (including MEIL) during the BJD regime included allegations of corruption in mega water projects, though no major proven scams specifically tied to MEIL’s Odisha water works have been widely reported in public sources. Post-2024 political changes led to reviews of such contracts.

On-Ground Results and Impact:  MEIL’s projects contributed to Odisha’s progress toward universal piped water access:

Urban: The Bhubaneswar project enhanced reliable supply for key institutions and industries, supporting the capital region’s growth.

Rural: The 21+ schemes targeted saline/fluoride-affected and remote areas, aiming to cover lakhs of people with treated piped water. Company visuals show completed pipelines, treatment plants, and community benefits in districts like Bhadrak and Sonepur.

Overall Alignment: These fed into higher rural coverage under Jal Jeevan Mission, though challenges like delays, quality consistency in remote habitations, and maintenance persisted in some areas (as seen in general surveys during Patnaik’s era).

In summary, MEIL was indeed a key non-Odia player that bagged several (likely dozens, including the 21 rural ones) drinking water work orders in Odisha, focusing on large-scale rural and bulk urban supply. This helped scale infrastructure quickly but drew criticism similar to other out-of-state firms for transparency and local preference issues. Outcomes were positive in coverage expansion, particularly in targeted districts, contributing to the state’s drinking water narrative under Naveen Patnaik.

Other Non-Odia Firms in Mega Projects: Reports highlight broader involvement of out-of-state companies in projects totaling Rs 1 lakh crore, with allegations of scams during the BJD rule. The Odisha Soochana Adhikar Abhiyan (an RTI outfit) demanded probes into these contracts, claiming non-Odia contractors were favored, leading to substandard work and fund misappropriation.23c539 Specific names from various sources include firms like those involved in the Janibili integrated water supply project (Rs 431 crore) in Ganjam district, though exact contractors aren’t always disclosed publicly.10e543 In Kendrapara, a Rs 200 crore project sparked protests over potential river water diversion to industries, executed by non-local players under state oversight.

Broader Context and Allegations: In 2024, post-Patnaik’s tenure, the new BJP government announced investigations into these contracts, citing corruption in the Panchayati Raj and Drinking Water Departments. RTI revelations pointed to 17 non-Odia companies handling Rs 35,000 crore worth of work, with claims of kickbacks and incomplete projects. No comprehensive public list exists, but patterns show reliance on firms from Tamil Nadu, Telangana, Maharashtra, and Gujarat for technical expertise in desalination, treatment plants, and pipelines. This contrasted with local Odisha firms being sidelined, fueling political debates.

While these engagements accelerated project timelines, they were criticized for lacking local accountability. For instance, in Mayurbhanj district, six mega projects were approved in 2022, but contractor details leaned toward non-locals.

On-Ground Results of Drinking Water Initiatives:  The outcomes of these projects under Patnaik were mixed: significant urban successes in water access and quality, but persistent rural challenges, low satisfaction in surveys, and allegations of incomplete or subpar work. Key metrics and findings:

Positive Achievements:

Urban Focus – Drink from Tap Mission: Launched in 2020, this Sujal initiative made Puri the first Indian city with 24×7 drinkable tap water in 2021, benefiting 2.5-3 lakh residents.By 2023, it expanded to 19 cities, covering 12.3 lakh people with metered, quality-assured supply meeting IS 10500 standards.ead8e7 Non-revenue water loss in Puri dropped from 47% in 2017 to under 15% by 2021.Overall, 99% of urban households achieved piped connections by 2023, with 107 of 115 cities at 100% coverage. Bhubaneswar became the first million-plus city with full household connections.

Innovations: Women’s empowerment via “Jal Sathi” (5,000 women managing distribution), mobile labs for testing, and 24×7 helplines reduced complaints.Environmental benefits included reducing 3 crore plastic bottles annually in Puri.

Criticisms and Challenges:

Surveys and Public Perception: A 2018 ADR survey rated the government’s performance “below average” on drinking water access, with 44% of voters prioritizing it as a top issue. Rural areas fared worse, with irrigation and drinking water both at 43% priority, amid scanty rainfall and low irrigation potential (3% in districts like Bolangir).

Alleged Scams and Inefficiencies: RTI groups claimed massive corruption in Rs 1 lakh crore projects, with non-Odia firms delivering incomplete or faulty infrastructure.Protests in Kendrapara highlighted fears of water diversion to industries over households.d8f07b Urban-rural disparities persisted, with rural projects often delayed.

Overall Coverage Gaps: Despite claims of near-universal access, ground realities showed contamination issues and inconsistent supply in remote areas. Post-2024 reviews under the new government aim to audit these for accountability.

Conclusion;  Naveen Patnaik’s administration invested heavily in drinking water, engaging non-Odia companies like L&T, MEIL and KEC-Kaveri to leverage external expertise for ambitious projects. This led to notable urban successes, such as Puri’s pioneering 24×7 tap water model, which set national benchmarks. However, rural outcomes lagged, with surveys indicating dissatisfaction and allegations of corruption tainting the legacy. Substantiated data shows progress in coverage (99% urban piped connections), but uneven implementation and transparency issues highlight areas for improvement. Future audits may reveal more on the efficacy of these engagements.

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