VIJAYAWADA: The state government has decided to stand its ground and push for the approval of Revised Cost Estimates (RCE) of Polavaram Irrigation Project at 2017-18 price level as cleared by technical bodies such as the Central Water Commission (CWC), Revised Cost Committee of Ministry of Jal Shakti (MoJS) and Polavaram Project Authority (PPA).
Chief Minister YS Jagan Mohan Reddy directed officials to take up the issue with the Centre as capping the costs, as communicated by the Ministry of Finance, at 2013-14 price level has “no relevance now” and that “it is impossible to complete the project at that price.” The Water Resources Department officials on Saturday apprised Jagan of the communication from the Finance Ministry, which said only Rs 7,053.74 crore (at 2013-14 price level) was to be reimbursed as against the Rs 47,725.74 crore approved and recommended by the MoJS.
The Chief Minister emphasised that the cost of land acquisition, rehabilitation and resettlement (LARR) itself was around Rs 29,000 crore and capping the entire project cost at Rs 20,398.61 crore (at 2013-14 PL) has no relevance. “The CM directed the officials to take up the issue immediately with the Government of India duly stating that the Revised Cost Estimates as approved by the PPA, CWC and RCC of MoJS should be considered in the interest of completion of the project and in the interests of people of AP.
The internal correspondence of the Centre in September, 2016 and Union Cabinet memorandum approved in March, 2017, which are being referred to now for capping the expenditure have no relevance and it is surprising why the then government of AP remained silent on the adverse developments that are against the interests of the people of AP,” a statement issued by the Chief Minister’s Office after the meeting said.
Polavaram a national project, Centre must complete it: Jagan
The Union Cabinet memo referred to by the officials was the decision taken by the Centre on March 15, 2017, that of 100 per cent of the remaining cost of the irrigation component as on April 1, 2014 only would be funded by the Centre. The memo was based on the special dispensation agreed to by the previous State government in September, 2016. If necessary, the Union Cabinet can make an amendment to its 2017 resolution, the officials pointed out in the meeting.
Some were of the view that the State cannot be asked to forego its rights because of the fallacy of the previous government, which agreed to cap the rates. Jagan further stressed that since Polavaram was declared a national project, it was the Centre’s responsibility as per the AP Reorganisation Act, 2014, to complete the project. Sources told The New Indian Express that the CM instructed the officials to write to PPA regarding the issue as the Finance Ministry asked the MoJS to confirm the costs at 2013-14 PL.
The PPA is expected to hold a meeting next week, where the officials are set to make it clear that 2017-18 PL should be cleared. “The government of AP is only an executing authority as the project is monitored by the PPA that is under the Government of India. It is also noted that LARR and works are to be considered for payment at the rates, rules and provisions existing on the date of execution and also as recommended by the PPA, CWC and MoJS,” the CMO’s statement said.
For the record, the technical advisory committee of MoJS, in February, 2019, approved the RCE of Rs 55, 548 crore (at 2017-18 PL). Subsequently, in March this year, the revised cost committee of the MoJS cleared the RCE for Rs 47, 724.74 crore (at 2017-18 PL) and recommended its approval to the Finance Ministry. However, the Finance Ministry, in a communication to the MoJS dated October 12, said that the cost of irrigation component of the national project, as of April 1, 2014 (at 2013-14 PL) was only Rs 20, 398.61 crore.
“The revised cost committee of the MoJS ... has appraised the cost of the irrigation component only of PIP as on April 1, 2014 (at 2013-14 PL) at Rs 20,398.61 crore and the same has the approval of the Minster for Jal Shakti. It has also been confirmed by the MoJS that an amount of Rs 4,730 crore has already been incurred on irrigation component of Polavaram as on April 1, 2014 (at 2013-14 PL). Therefore, the balance as on April 1, 2014 (2013-14 PL) was Rs 15,667.90 crore and the same was to be reimbursed by the Government of India,” the Finance Ministry said in its communication.
It added that as Rs 8,614.16 crore has already been reimbursed, Rs 7,053.74 crore balance only remains to be reimbursed. “If there was a capping at 2013-14 PL, then why did the Finance Ministry seek RCE at 2017-18 price level and why was it approved by all the technical agencies? We are going to stand our ground. Since the Finance Ministry asked the MoJS for confirmation, we will impress up on the Centre, through PPA, that the latest rates as approved by the RCC of MoJS have to be cleared,” a senior official in the Water Resources Department explained. In Saturday’s meeting, State Finance Minister Buggana Rajendranath Reddy informed the CM that the Union FM responded positively to the State’s request to reimburse the expenditure already made on the Polavaram project.