According to social sector report compiled for the year ending March 2014 by CAG, Due to improper planning, tagging a state project and lack of coordination between three departments of government, an entire expenditure of Rs 158.16 crore remained unfruitful.
The project, was divided in 39 components among three departments, Housing and Urban department (for installation of water pipe, treatment plan), Revenue and Disaster Management (for land acquisition) and Water Resources (for development of water source) for smooth execution, but never reached completion. The project was initially funded by central government scheme of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), and Rs 166.90 crore was earmarked for it in July 2008. CAG SAID Due to addition of project cost, another detailed project report was prepared, overriding earlier one, which resulted in delay in project implementation and cost escalation. Because of the delays, the state government lost Rs 61.73 crore central assistance for the project.
Also, it did not invite tender for the work and awarded the contract to state-run Odisha Construction Corporation without making available the site land, which resulted in cost overrun and unfruitful expenditure. The departments have assured to complete the work by March 2015, ahead of RathYatra in July this year, when around three million pilgrims are expected to visit the holy town. March 2015, as per several samples test checked by government laboratories showed the water in the area is not suitable for human consumption.