The State government has requested the Union Ministry of Water Resources to release ₹4,810 crore, which is the money it spent on the Polavaram project till date, at the earliest.
CM’s instructions
Chief Minister Y.S. Jagan Mohan Reddy had instructed officials of the Water Resources Department to pursue with the Ministry and ensure the early release of funds when he reviewed its status in the first week of June. In accordance with the orders of the Chief Minister, a request was made to the Centre seeking the release of funds.
As per the procedure, NABARD will release the amount to the State government after the Water Resources Joint Secretary approves it. The Centre, which in fact should construct the project as per the A.P. Reorganisation Act, 2014, had, on the request of the the TDP government, entrusted the task to it. The Centre had since then been releasing funds for the work executed after obtaining clearance from the Polavaram Project Authority (PPA).
But later, the flow of funds stopped, and the amount due to the State increased to ₹4,810 crore. Of the ₹11,537 crore spent by the State on the project construction, only ₹6,727 crore was reimbursed after approval by the PPA. The cost of the project was initially estimated to be ₹16,010.45 crore at the 2010-11 price level (according to DPR – I).
The State government had subsequently submitted a revised estimate of ₹57,940.86 crore at the 2013-14 price level.
The PPA, however, had sought an updated DPR-II at the 2017-18 price level. The estimated cost according to the DPR-II was put at ₹55,800 crore.
Thought the DPR-II had been approved by the Technical Advisory Committee (TAC), the Central Water Commission (CMC) was yet to clear it.
“The Centre is still making payments as per DPR-I at the 2010-11 price level,” sources said.