VIJAYAWADA: Two months after the Union Ministry of Finance sanctioned Rs 1,850 crore for Polavaram Irrigation Project, the Ministry of Jal Shakti has asked the National Water Development Agency (NWDA) to release the said grant-in-aid under the Accelerated Irrigation Benefit Programme (AIBP).
However, the ministry’s order has over two dozen riders, including recovery of the grant as a loan from the State exchequer if the latter fails to comply with the conditions, which may further delay the project execution.
According to the order dated January 9, the State projects wing of the Jal Shakti Ministry sent a communication to the NWDA Director General conveying the sanction of the President of India to the payment of Rs 1,850 crore to the Polavaram Project Authority (PPA) under the AIBP. The release is towards the amount already utilised by the State against the irrigation component after April 1, 2014, and meant for onward release to the State of Andhra Pradesh, the order read.
Noting that the release of further installment would be subject to specific confirmation by the State government/PPA of the physical progress and that there are no shortfalls against the targets, the ministry set 25 conditions to be complied by the State government/PPA. While most of the clauses are as per the standard procedure, a couple of them have raised the eyebrows in the power corridors.
Submit expenditure report within 18 months: Centre
The ministry’s order said, "The State/PPA would be required to submit audited statements of expenditure incurred on the components of the projects within 18 months of the completion of the financial year in which the fund is released. The release of fund of the following years will not be considered if the audited statement of expenditure is not furnished within the stipulated time. If the State/PPA fails to comply with the agreed/revised approved date of completion, the grant component released will be treated as a loan and recovered as per usual terms of recovery of Central loan."
The clause has raised many an eyebrow among the officials, who have been working overtime to get the funds for the national project. "The process has become too long drawn. Now, we have to wait once again for NABARD to transfer the money to us. The clause of the grant becoming a loan if conditions are not complied to is unusual. This is the way a national project is being funded," a senior official from the State government expressed disappointment. The release of funds has already been delayed and these procedures will only lead to further delay of the project execution, the official said.
Adding to the apprehensions of further delay, the Jal Shakti ministry’s order also said, "The release may be regulated and the whole amount may not be released in one installment unless deemed absolutely necessary keeping in view the state of preparedness of the implementing agency in utilising funds." The NWDA may draw the funds from NABARD under the Long Term Irrigation Fund and send it to the PPA’s account, the order added.
For the record, the Finance Ministry has issued an order sanctioning the funds on November 8, 2019. The State water resources officials have been pursuing the matter, which got caught in the procedural delays at the Centre ever since.
Despite the clearance by the Finance Ministry, the State officials have to push for the release of funds and submitted multiple representations to the Centre. "A national project is the responsibility of the Centre. So, all the running-around we are doing is actually their work. But, in the interest of the State, we are doing it. Yet, the process is only getting longer," the official said.
Release of timely and adequate funds is critical for Polavaram project as the State has to complete Land Acquisition, Rehabilitation and Resettlement (LARR), which is necessary for the completion of the project.
"As LARR involves upfront payment of compensation, it is essential that funds are available immediately. Our entire plan of execution is dependent on how the funds are released," another official from the Water Resources Department explained. The State needs at least Rs 3,100 crore immediately to finish the R and R of phase 1 (+41.15m contour) of the project by mid-2020.
Riders may delay project execution
The order of the Union Ministry of Jal Shakti has over two dozen riders, including recovery of the grant for Polavaram as a loan from the State exchequer if the latter fails to comply with the conditions, which may further delay the project execution