Andhra Pradesh: Centre disburses Rs. 320 crore for the Polavaram project

Union Finance Minister Nirmala Sitharaman has issued orders sanctioning Rs. 320 crore for the Polavaram project. It has been directed to release these funds to the Polavaram Project Authority (PPA) from the funds allocated to the Union Ministry of Water Energy in the 2021–22 budget. These will reach the PPA account on Thursday. Authorities said they would reach the state treasury on Friday.

The Center declared the Polavaram project as a national project under the Bifurcation Act. On April 1, 2014, the Irrigation Department promised to reimburse one hundred percent of the cost. The state government has so far spent Rs. 18,372.14 crore on the project of which Rs.13,641.43 crore was spent after April 1, 2014. Meanwhile, the Centre has so far repaid Rs 11,492.16 crore and owes Rs 2,149.27 crore.

Project officials have submitted the bills amounting to Rs 2,149.27 crore spent by the state government to PPA. The PPA, which is examining the bills, has so far sent Rs. 711.60 crore to the Union Ministry of Water Resources for reimbursement. With the approval of the Central Water Board (CWC), the Union Ministry of Water Energy has sent proposals to the Union Finance Ministry seeking sanction of this amount. Of this, Rs. 320 crore was sanctioned by the Finance Ministry in the first phase.

Sources in the department said that they are looking into the matter of sanctioning the remaining amount. With the latest sanction of Rs. 320 crore, the Centre still has to repay Rs 1829.27 crore of the expenditure incurred by the state.