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October 8, 1998

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Controversial Krishna Valley work to resume by Diwali

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Work on the halted Krishna Valley Development Project, the Maharashtra government's ambitious project to impound waters of the Krishna river by 2000, would resume by Diwali, according to official sources in Pune.

The project had developed hiccups recently when contractors, engaged to complete the project, stopped work and three of them launched an indefinite hunger strike before the office of the Maharashtra Krishna Valley Development Corporation demanding that their dues be cleared forthwith. The contractors had subsequently withdrawn the strike following an assurance from the corporation.

It has still not been possible to resume work because of the continuing rains.

'It is hoped that construction of dams and canals will commence by Diwali,' superintending engineer P C Jhapke said.

Jhapke claimed rhe MKVDC had till now disbursed Rs 2 billion of outstanding dues. This includes disbursement of about Rs 1.3 billion to 3,436 contractors whose bill did not exceed Rs 10 million each, and about Rs 620 million to 50 contractors whose bill ranged between Rs 10 million to Rs 50 million.

The corporation has also started disbursing dues to contractors whose bills exceed Rs 50 million. It has been, however, unable to clear the dues of a few contractors because of their failure to submit proper documents.

UNI

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