Polavaram Project Authority recommends RCE at 2017-18 PL

However, the PPA added that a decision on the request of AP to include water supply component in the irrigation component cost may be taken by MoJS.

Published: 22nd November 2020 09:32 AM  |   Last Updated: 22nd November 2020 09:32 AM   |  A+A-

Polavaram project

Polavaram project (Photo |EPS)

Express News Service

VIJAYAWADA: In what clears a major hurdle for Polavaram Irrigation Project, the Polavaram Project Authority (PPA) emphatically said that the Revised Cost Estimates (RCE) at 2017-18 price level has to be approved for the completion of the project not withstanding the 2017 Union Cabinet resolution. The PPA recorded the same in its minutes of the meeting held on November 2 and will now forward the same to the Ministry of Jal Shakti (MoJS), which in turn will recommend it to the Finance Ministry for clearance.

According to the minutes of the meeting forwarded to the State government on Saturday, the PPA stated that duly considering the Revised Cost Committee (RCC) report dated March 17, 2020, it has approved the recommendation of 2017-18 PL at Rs 47,725.74 crore, of which Rs 45,60.91 crore is the power component and Rs  7,214.67 crore is the water supply component. The funding mechanism for the increase in project cost at 2017-18 PL as recommended by RCE in its report dated March 17, 2020, needs to be finalised for project completion.” 

The PPA stated so pointing out that the Union Cabinet in March 2017 had decided that the Centre would provide 100 per cent of the remaining cost of the irrigation component only for the period starting from April 1, 2014. However, the PPA added that a decision on the request of AP to include water supply component in the irrigation component cost may be taken by MoJS.

The PPA also approved the recommendations of the estimated cost for 2013-14 PL at Rs 29,027.95 crore, of which Rs 4,560.91 crore is the power component and Rs 4,068.43 crore is the water supply component, and Rs 20,398.61 crore towards irrigation component. 

Sources told TNIE that the 2013-14 PL recommendation was approved so that release of reimbursement will not be stopped until the 2017-18 PL gets the final clearance.Though PPA CEO J Chandrashekhar Iyer “reiterated” that the authority was bound by the Union Cabinet/MoF/MoJS directives in respect of Polavaram project and urged that the authority may approve the recommendations of RCC, Special Chief Secretary (Water Resources) Aditya Nath Das insisted on 2017-18 PL for the completion of the project.

It may be recalled that the Union Ministry of Finance, on October 12, shot off a letter to the MoJS asking it to confirm 2013-14 PL of Rs 20,398.61 crore. Sources said that the authority was firm on recommending 2013-14 PL as mentioned by the Finance Ministry. However, Aditya Nath Das, in the authority, contended, “It becomes essential that PPA recommends a realistic cost estimate as accepted by Advisory Committee of MoJS and thereafter examined and recommended by RCC, in order to fulfil the mandate given to the PPA for completion of the project.”

Aditya Nath Das confirmed to TNIE that the final minutes of the meeting were sent to the State government and that it will now be forwarded to the MoJS and subsequently to the Ministry of Finance.


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