VIJAYAWADA: The Centre on Thursday said the revised cost estimate (RCE) of Polavaram Irrigation Project was cut down from Rs 55,548 crore (at 2017-18 price level) to Rs 47,725 crore (at 2017-18 PL) due to reduction in government/forest land requirement, changes in work quantities of Left and Right Main Canals, and reduction in infrastructure cost per project displaced family.
The Ministry of Jal Sakthi added that the Centre has so far reimbursed Rs 10,848.36 crore spent by the state government for the execution of the national project.In response to questions raised by MPs from Odisha, Gujarat, UP and New Delhi, and TDP’s K Rammohan Naidu and Galla Jayadev in Lok Sabha on Thursday, Union Minister of State for Jal Shakti Rattan Lal Kataria noted that the technical advisory committee approved the RCE of Polavaram at Rs 55,548.87 crore at 2017-18 price level (PL), in its 141st meeting in February, 2019.
In March next year, the revised cost committee recommended the RCE at Rs 47,725.74 crore (irrigation plus water supply - Rs 43,164.83 crore and power component -Rs 4,560.91 crore) at 2017-18 PL.“The cost difference between the two estimates is primarily attributed to reduction in government/forest land requirement, changes in work quantities for Left and Right Main Canals, etc. Further, the cost difference has also arisen due to revision in infrastructure cost from Rs 7 lakh to Rs 6.52 lakh per project displaced family (PDF) as the GST on this component has been corrected from earlier 18 per cent to 12 per cent,” he explained.
The Union minster also noted that the state government informed that out of the total 1.67 lakh acres required, 1.11 lakh acres had been acquired, and an amount of Rs 6,583.11 crore was spent on Land Acquisition and Rehabilitation and Resettlement against the estimated Rs 28,172.21 crore. “The project is planned for completion by April, 2022,” the Union minister noted.
To a query on construction of embankment for protection from submergence in Odisha, the minister said: “As reported by the government of AP, a provision has been made in the second RCE for construction of protective embankment along the rivers Sabari and Sileru to prevent submergence in the territories of Odisha and Chhattisgarh. Further, the AP government has intimated that forest land is not required for construction of above mentioned protective embankments in Odisha.”