VIJAYAWADA: The state water resources department expects that the next tranche of Polavaram Irrigation Project’s (PIP) reimbursement of Rs 2,234.288 crore will reach the State’s kitty in the next few days. Though it has been almost a month since the Union Finance Ministry has given clearance to release the funds without insisting on the approval of revised cost estimates (RCE), the funds are yet to be processed even as the State officials have been closely pursuing the matter.
According to the officials, NABARD would be holding a board meeting shortly to raise the extra budgetary resources (EBR) of Rs 2,234.88 crore under the Long Term Irrigation Fund (LTIF) towards reimbursement of the funds spent by the State.
“The Ministry of Finance on October 29 gave clearance to release without insisting on RCE at the State’s request and the file is now with NABARD. We are expecting that the funds would reach the State in a week,” a senior official explained. For the record, the Ministry of Finance had given conditional clearance for the release of Rs 2,234.288 crore reimbursement tranche on October 12. The condition was that the Ministry of Jal Shakti shall confirm 2013-14 price level for the RCE.
However, special chief secretary (water resources) Aditya Nath Das pushed for de-linking the issue of RCE and release of funds as the approval of RCE may take time. On State’s request, the ministry, on October 29, relaxed the condition for this time.From NABARD, the funds would be channelled to the State through the National Water Development Agency (NWDA) and Polavaram Project Authority (PPA).
The PPA is likely to credit the funds, once processed, to the special account the State water resources department is opening for the national project. The separate head of account is being created so that the funds received through reimbursements made by the Centre could be deposited for exclusive payment to priority works.