VIJAYAWADA: The State Water Resources Department has expedited the process of finding financial tie-ups for major irrigation projects by according permission for the incorporation of four special purpose vehicles (SPVs) so far. The officials are working to establish one more State-owned company soon so that the SPVs can be registered and can start the process of raising funds for the execution of the projects.
So far, the department has issued orders for the formation of four SPVs for Rayalaseema Drought Mitigation Project, YSR Palnadu Drought Mitigation Project, Uttarandhra Sujala Sravanti Project and Krishna Kolleru Salinity Mitigation Project. While the incorporation of AP Rayalaseema Drought Mitigation Project Development Corporation Limited is completed, according to the officials, the process for the others is at an advanced stage. In addition to the above four, one more company would be floated for AP State Water Security Development Projects.
According to information, around 45 projects - 27 under Rayalaseema Drought Mitigation, six under Krishna Kolleru Drought Mitigation, five under Palnadu Drought Mitigation, four under Uttarandhra Sujala Sravanthi and three under AP State Water Security Development Projects -- have been classified into the above five categories to be taken up on a priority basis. An estimated Rs 72,000 to Rs 74,000 crore is required over the next five years for implementing the above projects. While about Rs 7,000 crore would be required in the present financial year for the projects, Rs 15,000 to Rs 18,000 crore has been the projected requirement for each of the next four fiscal years until 2024-25.
“The idea of formation of SPVs is to ensure that all the projects have financial tie-ups before their execution so that there won’t be any delay to implement them. We have already approached financial institutions including banks and development agencies such as Power Finance Corporation Ltd and Rural Electrification Corporation Ltd, and are in talks for some of the projects,” a senior official explained.