VIJAYAWADA: Amid the ongoing consultations between the State and the Centre over confirmation of Revised Cost Estimates of the Polavaram project at 2017-18 price level, Finance Minister Buggana Rajendranath Reddy on Friday met Union Finance Minister Nirmala Sitharaman and urged her to approve the RCE at 2017-18 price level.
Thanking the Union Finance Minister for agreeing to release Rs 2,234 crore of the Rs 4,000-odd crore spent by the government on Polavaram project, Rajendranath explained the problems to be faced by the State government in executing the project, if the revised cost estimates at 2017-18 is not accepted.
Finding fault with the previous TDP government for agreeing to the 2013-14 cost estimates, Rajendranath said the Land Acquisition, Rehabilitation and Resettlement (LARR) at that time was calculated based on the preliminary estimates of 2005-06.
"I explained the subsequent developments, including the project displaced families, RCE I, II and Revised Cost Committee and urged the Centre to go through the developments. By agreeing to 2013-14 estimates by the previous TDP government, the State will have to bear a burden of Rs 17,000 crore," he said.
Asked if the Centre is ready to accept the RCE at 2017-18 price level, Rajendranath said he had put before the Union Minister the facts and not just estimates.
"In 2013-14 estimates, an approximate one lakh acres were to be acquired, but later it increased to 1.50 lakh acres. This is because the 2013-14 estimates were based on 2010-11 figures, which were in turn taken from 2005-06 figures," he said.
"The then TDP government should have raised the issue as the Centre in April 2014 passed a Cabinet resolution stating that there is a possibility of increase in cost related to rehabilitation and resettlement, escalation of project cost as it might take years to execute. However, the TDP government in 2017 agreed to the 2013-14 estimates, which is now posing a major hurdle to the national project," he said.
Rajendranath said that the Union Minister promised to look into the "factual position" explained by the AP government.