VIJAYAWADA: The Finance Department has given clearance for the sanction of Rs 12,911 crore for completing pending works under phase-1 of the Polavaram Irrigation Project on Chief Minister YS Jagan Mohan Reddy’s request dated July 15, 2022, Minister of State for Jal Shakti Bisweswar Tudu said in Rajya Sabha in a written reply to a query raised by YSRC MP V Vijaya Sai Reddy.
He elaborated that Rs 10,911.15 crore has been sanctioned for completing the project and storing water at a height of 41.15 metres, while Rs 2,000 crore has been earmarked for repairs of the damaged diaphragm wall. On June 5, the finance department’s expenditure wing stated that it has no objection to the same, Tudu said.
He added the Union cabinet’s decision to amend the earlier decision regarding funding for the project needed to be approved.
Further, he pointed out that the State government had submitted the revised estimates of Rs 17,144 for completing the remaining works under phase-1 and measures have been taken to consider it. The Union Minister added it was not proper to fix a time limit to complete the process.
Rs 14,969 crore reimbursed
In response to TDP MP Kanakamedala Ravindra Kumar’s query on the cost escalation of the Polavaram project, Tudu said it was declared a national project under the AP State Reorganisation Act, 2014. The Central government has been reimbursing the expenditure on the irrigation component of the project since April 1, 2014, upon receipt of verified bills and recommendations from the Polavaram Project Authority and the Central Water Commission, he explained.
He clarified that the liability of the Central government as on April 1, 2014, was determined to be Rs 15,667.9 crore at the 2013-14 price level and Rs 14,969.36 crore was reimbursed. However, the State government has submitted a proposal whereby the balance cost for phase-1 of the project was indicated as Rs 17,144 crore.
On the completion of the project, Tudu said as per the current timelines, the project is scheduled to be completed by June-2024, but in view of the setback caused by major floods in the River Godavari in 2020 and 2022, completion of the project has been delayed.