VIJAYAWADA: To expedite the release of funds for the execution of Polavaram project, the State government is learnt to have completed the pending audit of expenditure made on the project before March 31, 2014, prior to it being accorded a national tag. The State officials are busy preparing the draft revised cost estimates (RCE), to be sent to the Centre, and expect a favourable announcement before mid-January. Even though the technical advisory committee (TAC) had cleared the revised cost estimates (RCE) in February, 2018, the revised costs are yet to get financial concurrence.
The Union Ministry of Finance has sought an audit statement on the expenditure of Rs 5,130 crore made on Polavaram before it was accorded the national project status. In fact, the Ministry of Finance had put the same rider even for the release of Rs 1,850 crore interim funds sanctioned on November 8, 2019. With the ministry insisting on the audit statement, the State Water Resources department has submitted the requisite information.
“The audit sought by the Centre has been completed. The RCE draft is getting ready and it is expected to be sent to the Union Ministry of Finance this week. With this, two major things, required for further financing the project, come to the last stage. Once the clearance is given, we will press for more funds,” an official explained. Regarding the release of Rs 1,850 crore, the Union Ministry of Water Resources is yet to send a loan requisition to NABARD for the latter to raise the money to transfer to the State.
The requisition was sought by NABARD even though the Finance Ministry had given orders twice for the release of money. Once the union ministry makes the requisition, NABARD will transfer the money to the Polavaram Project Authority