Delay in release of funds will hamper project progress: Chandrababu Naidu

Amaravati: In view of BJP’s strategic campaign against the State government over Polavaram Irrigation Project (PIP), Chief Minister N Chandrababu Naidu on Monday wrote a letter to the Central government seeking early action on key issues relating to release of funds, approval of revised cost estimates and other issues.

The Chief Minister specially mentioned that the Centre has to reimburse a balance amount of Rs 1,934.41 crore that has already been spent from the State funds as a counter to the comments made by BJP State president Kanna Lakshminarayana, who said on Sunday during a meeting at the Polavaram Project site that the Centre had cleared all the arrears pertaining to the project.  

The BJP leader also said that Chief Minister N Chandrababu Naidu was claiming that the Centre should release Rs 18,000 crore, only to mislead the people.

In his letter to Union Minister for Water Resources Nitin Gadkari, the Chief Minister said that after declaration the project as national project, the State government had spent an amount of Rs 8,662.67 crore till the end of May (2018), but the Centre has reimbursed only Rs 6,727.26 crore till date.

He wanted the Centre to reimburse the balance amount of Rs 1,934.41 crore including balance irrigation component as per revised estimate cost of 2010-11 which is Rs 431.27 crore. 

He said the Union Ministry of Finance communicated to the State government on September 30, 2016 that it will provide 100% funding of the remaining cost of the irrigation component of the project for the period starting from April 1, 2014 to the extent of cost of the irrigation component on the date.

“As the state government has furnished the revised estimate cost of Rs 57,940.86 crore at 2013-14 base level, the Central government has to intervene to expedite the approval of revised cost estimate of project on priority,” he said. The Chief Minister also told the Centre that sufficient funds have to be made available to complete Rehabilitation and Resettlement (R&R) works.

Stating that the State government has taken all the steps for timely completion of the project works and the rate of progress improved after Navayuga Engineering company has been entrusted a part of balance works, he said, “Any delay in providing required funds (from Centre) will seriously hamper the present pace of activities in respect of works, land acquisition and R&R.”

Naidu wanted the Centre to direct the authorities concerned to expedite the approval of revised estimate cost at 2013-14 base level and permit to release funds to an extent of Rs 10,000 crore as the approval of REC of project will take some time.  

Water Resources Minister Devineni Uma Maheswara Rao has also written a letter to Centre recently raising the above issues, but the Centre did not give any clarity. It has only convened a meeting with the State government officials in New Delhi.