Hyderabad: Telangana Chief Minister K.Chandrasekhar Rao’s pet project Water Grid faced a lot of flak from all corners before it was launched. Now it seems allegations made by the opposition parties may come true after all. They have been alleging that Water grid project is for profiting pipe manufacturing industry. It is learned that the government is willing to grant work of supplying pipes to Jindal industry. Shortly, a Government Order is expected to be issued in this regard.

Pipelines are important to the Water Grid project. The Government has decided to lay 1.21 lakh long pipelines in ten districts. KCR prefers to assign pipe laying work for the company which would start a production unit in Telangana rather than buying pipe from other States. With this background, Jindal Company has showed interest in setting up an industry. It is said that the government favors Jindal Company. But the strategy of Jindal is to possess the entire project, if this is not possible its intention is to leave Intake well works to other companies and get more profitable pipe manufacturing contract.

A few companies have also approached the government and discussed on this issue. “The total cost of this Water grid project is Rs 25,000 crore. Naturally many companies have been trying to get the project contract,” said an official.

The government is expected to spend Rs 25,000 crore to construct sub-grids in nine districts of Telangana with the aim to supply drinking water to 26,000 villages. For this purpose, especially Telangana Drinking Water Supply Corporation was established with Panchayat Raj department Chief Secretary J. Raymond Peter as a Managing Director. The CM is also planning to appoint Chairman for this project.

An official source said that there would be major changes in budget estimations because of this project. The Government expects Rs 25,000 might be enough in the first phase; however, this estimation reached Rs 42,000. Officials are busy reexamining survey details. The tenders have already been called for Rs 15,000 worth Intake well constructions, major players in construction industry Megha, L&T, NCC and other companies won these tenders, but agreement process is yet to complete.

Another side of government view is that all the companies who participated in tenders belonged to Andhra area; it has another idea to give this work only to the companies belonging to Telangana.

K. Chandrasekhar Rao sticks on to his policy of not compromising on the quality of the water grid works. He has already announced that grid project would be completed in next four years, and then we would go into the public and ask votes. The Jindal Company assured the government that there will be no compromise in the quality of pipes.

Speaking on condition of anonymity a source, said that the government sought a report from Jindal about pipe industry. But officials refute this and said no decision was taken yet.

“Not only distribution of pipes and establishing pipes companies in Telangana, but also creating employment opportunities for local people,” CM has clarified clearly to Jindal. Ultimately Jindal Company has come forward to pipe manufacturing unit and ready to submit a Detailed Project Report (DPR). Meanwhile, other companies are busy lobbying at the national level.