Union Government agrees to release Rs. 3000 crore for Polavaram Project

In the wake of chief minister Jagan Mohan Reddy's meeting with Prime Minister Modi and Union Home Minister Amit Shah last week, the central government has released 3000 crores for the construction of Polavaram project. The state government had spent Rs 5,135.87 crore before the national status of the Polavaram project came up. With this money, the late Chief Minister YS Rajasekar Reddy completed the excavation of the right and left canals of the Polavaram project.

Union Energy Secretary Yup Singh on Friday submitted proposals to the Union finance ministry asking for the release of Rs 3,000 crore. The Union Finance Ministry has responded. The Finance Ministry has informed the Union Jal Sakthi Ministry that funds will be released through NABARD in the first week of November. The government will reimburse the amount through NABARD.

However, when the state government submits the UCL (Utilization Certificate), the debt will be paid by the central government. The state government has so far spent Rs 16,935.6 crore for the Polavaram project. Out of which, Rs. 5,135.87 crore was spent before Polavaram was declared a national project (before April 1, 2014). The Center has promised in the AP Reallocation Act that the Polavaram project will be completed at a full cost.

Since April 1, 2014, the state government has spent Rs 11,799.73 crore. Of this, Rs 6,727.26 crore has already been reimbursed by the Center and the remaining Rs 5,072.47 crore has to be refunded. The state government is currently working on submitting Utilization Certificates.