VIJAYAWADA: Standing its grounds, the State government has sought confirmation of the revised cost estimates (RCE) at 2017-18 price level for the Polavaram Irrigation Project (PIP) in a meeting held with the Polavaram Project Authority (PPA) in Hyderabad on Monday.Engineer-in-Chief C Narayana Reddy, after the meeting, said the PPA has responded positively to AP demand for PPA intervention to convince the Ministry of Jal Shakti for the same. “We have clearly explained the State government’s stand on the issue to the PPA. We insisted on the second revised cost estimate at 2017-18 price level,” Narayana Reddy explained.
Stating that the State government is only the executing authority, he said any decision on the entire issue will be taken by the PPA and it is its responsibility to convince the ministry of water resources and get the necessary funding for the project at second revised cost estimates, `47,725.75 crore.According to sources, the State government, putting forth its arguments before PPA, reminded the latter that Polavaram Project is a national project and completing it is the responsibility of the Centre. It further reminded that it is one of the main provisions of the AP Reorganisation Act.
It was brought to the notice of the PPA that while declaring Polavaram Irrigation Project as a national project, it was clearly stated that the cost incurred on the project prior to 2014 will be treated as State government’s share. In 2016, execution of the project was given to the State, which means the State government is only the executive authority.
Now, the Centre insisting on the Price Levels of 2013-14 is not proper, they said while pointing out that it was PPA and CWC which have agreed to the RCEs and questioned how justified it is to go back on it.
Chief Minister YS Jagan Mohan Reddy on Sunday wrote a detailed letter to Prime Minister Narendra Modi seeking his intervention to prevail upon the Finance Ministry to approve the project’s revised cost estimates at 2017-18 price level. He pointed out that the Finance Ministry’s decision to cap the funding to Polavaram Irrigation Project was against AP Reorganisation Act, but also unrealistic. The CM is expected to meet the Prime Minister to discuss the issue soon.
MoF to reimburse `2,234 cr to AP sans any conditions
In a relief to the State government, which has found itself in a tight corner over reimbursement of the funds spent on the Polavaram Irrigation Project, the Ministry of Finance (MoF) has agreed to reimburse `2,234.288 crore to AP through the PPA without insisting on the condition that the cost of the project would be considered at the 2013-14 price level as resolved in the Union Cabinet meeting on March 15, 2017.