On the 2nd of November, the Andhra Pradesh’s Polavaram Project Authority (PPA) is scheduled to meet.
The meeting is scheduled at the PPA office in Hyderabad to discuss the funds from the Central Government to construct the irrigation project.
The Polavaram Project is one of the biggest projects of Andhra Pradesh under the State Government and the Central Government.
The multipurpose irrigation project started under the leadership of the former State Government, the Telugu Desam Party (TDP.)
The project would solve all the water crisis of people in Andhra Pradesh and would be constructed by the Megha Engineering and Infrastructures Limited (MEIL.)
In today’s meeting, the Polavaram authority would mull over the suggestions of the State Government, the Yuvajana Sramika Rythu Congress Party (YSRCP) and oblige to the Centre’s decision.
In addition, the Andhra Pradesh Government would argue on Polavaram’s complete cost stating, the Central Government funding is also needed as under the AP Recognition Act (APRA) 2014, the Central Government is equally responsible for the completion of the project.
Today’s meeting would also discuss the resumption of construction as further delays could halt work and increase the estimated cost.
The State Government would also demand funding for the project.
Recently, the Union Finance Ministry wrote a letter to the PPA on the final structure of Polavaram project.
The Andhra Pradesh Department of Water Resources would be a part of today’s meeting and is likely to convey its views on the final estimates.
According to Jagan Mohan Reddy, the Chief Minister of Andhra Pradesh, the cost of Land Acquisition (LA) and Relief and Rehabilitation package together accounted for Rs. 28,192 crores.
The final estimated cost of the biggest project could be Rs. 55,549 crores as per 2017-2018 price.
However, the Central Government capped the expenditure at approximately Rs. 20,400 crores as per the 2013-14 price level, when the project started.
Considering the current scenario, estimated cost at Rs. 20,400 crores is unrealistic and it would be against the earlier commitments of the Central Government.
Mr. Reddy said If the Central Government limits the expenditure to Rs. 20,400 crore, it would not be possible to meet the total cost of civil works, LA and R and R. In such a case, the project could not be completed as targeted.
Mr. Reddy said the Andhra Pradesh Government already incurred Rs. 12,521 crores after bifurcation, including LA and R and R. Of the total amount of Rs. 20,400, Rs. 8,508 crore was reimbursed by the Central Government and the balance was to be paid.
However, the bills for the work done since December 2018 are pending.
It is also noted, in 2019 November, the Union Finance Ministry approved Rs. 1,850 crores for the multipurpose irrigation project.
In regard to this, on the 1st of November, Y.S. Jagan Mohan Reddy, wrote to the Centre seeking the release of funds as per the current estimates and complete the project soon.
Mr. Jagan said, “The State Government is only an executing agency on behalf of the Government of India (GoI) and the overall responsibility of completing the project lies on the GoI as per the APRA.”
The Jagan Mohan Reddy led YSRCP Government is likely to finish the Polavaram Project by 2021 December.
Stay tuned for further updates.
