Ahmedabad Urban Development Authority has not properly utilised its water supply scheme which was laid to supply potable Narmada water to 1.8 lakh units in western of Ahmedabad, says the CAG report. The water treatment plant installed had the capacity to treat 275 Million litres per day (MLD) against which AUDA was only treating 60 MLD. The report also noted the water transmission main trunk line laid with an installed capacity of 400 MLD water and projected utilisation capacity of 275 MLD of water was actually transmitting only 60 MLD. CAG stated that there was low utilisation of the capacity created resulting in unfruitful expenditure. CAG reported while allotting eight contracts amounting to Rs 53.38 crore, there was no provision in these contracts for payments for price escalation due to increase in prices of materials. However, on representation from contractors, AUDA decided to pay for price escalation for increased prices of steel, cement and pipes resulting in irregular payments of Rs 6.90 crore. Further scrutiny of records revealed that advance payments of Rs 3 crore were made to an agency entrusted with a work without furnishing details of works executed. CAG pointed out that liquidated damages were to be imposed on contractors for delay. In two different contracts AUDA had to impose a penalty of Rs 5.69 crore and in another case it was Rs 98.75 lakh. The work had to be completed in 10 months from awarding of contract. The contracts were awarded in August 2002 and October 2002 respectively. WATER SUPPLY Auda water supply scheme was to cover 35 village panchayats and nagar palikas. Main trunk line cost was estimated to be 106 crore. Distribution network cost was estimated to be Rs 140.33 crore. Water supply scheme envisaged supply of potable water to 1.80 lakh residential units. As on August 2005, only 3,262 residential units were given connections. As on March 25, 2008, only 21,321 residential units were given connections. Water treatment was for treating 275 million litres per day (MLD) as against these only 60 MLD was being treated.