PIP clears Rs 427 crore bills, State seeks more money 

RCE approval likely to take time unless there is political intervention

Published: 25th April 2021 02:50 AM  |   Last Updated: 25th April 2021 09:53 AM   |  A+A-

By Express News Service

VIJAYAWADA: The state water resources department, which is pursuing with Polavaram Project Authority (PPA) for the release of reimbursements, has written to the authority to not restrict the release of reimbursements based on the component-wise cost estimates approved as per 2013-14 price level as it would slow down the cash flow and affect the project execution. 

The department is in the process of taking the matter up with the Union Jal Shakti ministry so as to ensure finances until the revised cost estimates (RCE) is approved.The state has spent around Rs 12,422.83 crore till March 31, 2021, after PIP was accorded the national project status. Of the spent amount, the Centre reimbursed Rs 10,741.76 crore and Rs 1,681.37 crore is pending. While the PPA had processed only Rs 333.08 crore before March, the officials managed to get another Rs 427 crore bills accepted last month. 

“Around Rs 760.08 crore worth bills have been processed by the authority and recommended for release. The others have not been processed as the PPA is clearing only the work bills as per component-wise costs approved at 2013-14 price level. We have already written to the authority not to restrict component-wise. The government is also in the process of writing  to the Centre on the issue,” a senior official told TNIE.   

As the issue of revised cost estimates is still pending, the PPA is bound by the earlier approved costs at 2013-14 PL. Although the state government, including the chief minister, has written to the Centre multiple times and has been actively pursuing the RCE approval for the last six months, the issue is yet to be resolved. Unless there is a strong political intervention, the RCE approval is likely to take time, sources in the department added.

“Until then, we have to use the available resources or delay the payments to executing agencies. We are making sure that the execution schedule is not affected by the delay in fund release. So far, the works are going on as planned. If funds are cleared, then we can expedite the works,” an official added.


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