State to submit revised estimates to Centre

Amaravati: In the backdrop of Union government’s remarks in Rajya Sabha that the state government has not submitted revised proposals on Polavaram project, officials are all set to submit revised estimates to the Centre soon. A committee constituted by water resources department is preparing revised estimates of the project.

Highlights:

• Project cost estimated to be Rs 48,000 crore
• Rs 32,000 crore projected under land acquisition and rehabilitation

According to sources, the project cost has been estimated as around Rs 48,000 crore as against 2010-11 estimates of Rs 16,000 crore. The government will explain in the report that the project cost multiplied due to implementation of Land Acquisition, Rehabilitation and Resettlement Act- 2013. A senior official said around Rs 32,000 crore of total project cost has been projected under account of land acquisition process.

State government has recently sought separate reports on fresh estimation cost from superintending engineers of left main canal, right main canal, head works and land acquisition wings.

In a reply to Congress MP KVP Ramachandra Rao, Union minister of state for water resources, river development and Ganga rejuvenation Sanjeev Kumar Balyan said that Andhra Pradesh government had not submitted revised estimated cost of the Polavaram project at price level 2014-15.

He said the estimation cost of Polavaram project was Rs 16,010.45 crore (at price level 2010-11) which includes irrigation component of Rs 9,307.54 crore, power component of Rs 3,716.05 crore and drinking water component was Rs 2,986,86 crore. As per Polavaram Project Authority, the above estimation has provision of Rs 3,486.83 crore for land acquisition including rehabilitation and resettlement.

However, State government contends that the Centre must sanction around Rs 3,000 crore for the works that had been already completed even though it excluded the power component of Rs 3,716.05 crore from the total project cost of Rs 16,010.45 crore.

“The Centre is arguing that the technical advisory committee has given clearance for the amount of Rs 16,000 crore only. If the State government sends revised estimation for the project, the advisory committee must scrutiny it and send its recommendation to Centre. It may take some more time,” a senior official of water resources department told The Hans India.

In fact, a revised estimated cost proposal was reportedly submitted to Polvaram Authority in the last week. “The project authority is scrutinising our revised estimation for the project. As it may take more time, the State government has directed us to send a revised proposal to Union water resources ministry directly to speed up the process” said the official.

On other hand, officials are focusing on what objections could be raised by Centre after receiving revised estimate copy. Sources said the Centre reportedly pegged the project cost below Rs 40,000 crore and is reluctant to include power project component in the project cost.

The Polavaram Project Authority in its visit to project in summer reportedly raised several issues, including objections of neighbouring States, environmental issues and issues related to rehabilitation as several cases regarding rehabilitation have been in pending in courts.