Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has sought the Centre’s support in implementing the Polavaram project by streamlining fund disbursal.
The Chief Minister sought approval of the revised project cost of ₹47,725.74 crore and streamlining the process of reimbursement by authorising NABARD to provide a direct line of credit as a ‘Revolving Fund’.
Since the project cost has gone up exorbitantly from ₹29,027.95 crore to ₹47,725.74 crore, the state has requested the Centre to change the funding mode to the rules governing the release of funds for National Projects.
He urged the Centre to release funds upfront to reduce the burden on the precarious finances of the State.
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In a communication addressed to Gajendra Singh Shekhawat, Union Jal Shakti Minister, the Chief Minister said the Polavaram Irrigation Project was taken up on river Godavari by Andhra Pradesh. The Centre, recognising the importance of the project, declared it a National Project as per Section 90 of the AP Reorganisation Act, 2014.
The project has witnessed cumulative progress of 41 per cent as of September 15, 2020. The works at the project site are progressing at a brisk pace and the Government plans to complete the Polavaram project, including Relief and Rehabilitation (R&R) by the end of December 2021, resettling all the Project Displaced Families (PDFs) in rehabilitation colonies.
These planned targets are completely dependent on timely availability of funds as it would involve substantial cash compensations and construction of houses and amenities for PDFs before the coffer dams are closed and work on the main dam is in execution during the monsoon season.
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An expenditure of ₹12,513.69 crore has been incurred on the Polavaram Irrigation Project up to the end of August 2020, after the project was declared a National Project and the Centre took over the project completion in its entirety, including permissions and clearances as per Section 90 (4) of the AP Reorganisation Act, 2014.
The money spent on the project was reimbursed since June 2014 after due scrutiny of expenditure by Polavaram Project Authority (PPA) created solely for this purpose. Till date only an amount of ₹8,507.26 crore has been reimbursed to the Government of Andhra Pradesh by the Government of India through the PPA.
He said ₹18,000 crore is required before March 2021 and NABARD be authorised to raise the amount during the current financial year. The State has sought timely release of funds upfront with a simplified procedure for easy completion of the Polavaram project.