CHENNAI: With the state environmental department officials submitting Environmental and Social Impact Assessment (ESIA) report to the government, the water resources department (WRD) is likely to kickstart extension, renovation, and modernisation of the Grand Anicut that has been pending for a decade. The WRD plans to seek financial support from Asian Infrastructure Bank (AIB) through the department of economic affairs.
The Grand Anicut Canal, built in 1930s, requires upgrades due to defects identified in ESIA. Passing through Tiruchy, Thanjavur,and Pudukkottai, the canal’s components have encountered issues leading to canal lining breakages. A senior official from WRD said, “We have requested the bank to sanction the loan in Japanese Yen rather than US dollars.
This is because, when borrowing in dollars, the interest rate amounts to 7.5% per annum, including 2% service charges. However, if we secure the loan in yen, a 2% service charge suffices, leading to a significant saving of 5.5% in interest rate. While the loan has been finalised, the bank has not acceded to this request.” The WRD has submitted a comprehensive project report, estimating a cost of approximately Rs 3,000 crore for the extension, renovation, and modernisation works.
The state pledges 30% of the funds, with the remaining to be sourced through loans from the union government’s economic affairs department, the official added. Detailing the future plans, another official said, “Renovation will include installation of head and direct sluices, along with lining works in the three districts. Additionally, 33 tanks will be added to the existing 694 linked to the canal to alleviate water scarcity in tail-end pockets.”
The WRD has initiated preliminary works in certain villages, with the expectation of commencing and completing the project within three years upon receiving the funding approval. KV Elankeeran, state president of the Federation of Cauvery Delta Farmers Association, welcomed this initiative and requested that the work be speeded up, considering the farmers’ welfare. He told TNIE, “The Grand Anicut Canal is the perennial source for the delta districts. Around 7 lakh acres of land are benefiting. During the works, the state government has to take steps to improve the groundwater in these places.”