Polavaram loan slash hurts AP

Hyderabad: The Centre threw cold water at AP after promising Rs 1,400 crore and then within 24 hours slashing the amount by Rs 311 crore for Polavaram Project, which is expected to become the lifeline of AP. According to sources, the Centre allowed the state to avail loan of Rs 1,400 crore from Nabard but due to inexplicable reasons, said that for the time being AP could avail loan only up to Rs 1,089 crore.

The decision to prune the quantum of loan was more like rubbing salt into injury as it has dimmed hopes further of ensuring completion of the Rs 58,319 crore project before the next elections. The slashing of the funds is attributed to AP state adopting a hostile attitude towards the Centre after the TDP's breakup with the BJP.

Though elections are still far away, the atmosphere in the state is surcharged with the BJP and the TDP remaining locked in intense verbal duels while the YSRC and Jana Sena launching pincer attacks on the TDP for its "shabby" handling of the Status issue.

The Centre’s unhelpful attitude towards the Centre in creating hurdles proved to be the proverbial straw that broke the back of the camel of the alliance between the TDP and the BJP. When the Centre wrote to the state taking objection to subcontracting of works to another agency, Naidu came out, for the first time against the BJP in December last year and now they are bitter rivals.