The State government has initiated the procedure for obtaining loan from the Andhra Pradesh Water Resources Development Corporation (APWRDC) to tide over the Polavaram project fund crisis and also for amending the APWRDC Act, 1997, to increase the loan ceiling, which is currently ₹3,000 crore.
The proposal to amend the Act will be put before the State Cabinet for its approval at its next meeting.
Sources in the Water Resources Department said these were the steps the government was taking to resolve the perpetual fund crunch it was facing in the execution of the Polavaram project.
As per the Act, the corporation could borrow money from financial institutions and Non-Resident Indians, or even from the open market by issuing bonds (with or without guarantee), debentures, stocks or another instrument. But the Act clearly stipulates that the loan raised should not exceed ₹3,000 crore.
The corporation also has the power to accept deposits from individuals, organisations, or institutions in exchange for land or buildings and granting of fishing rights. Chief Minister N. Chandrababu Naidu is in favour of raising the ceiling either through an amendment or an ordinance, whichever is required, and the same would be put before the Cabinet for its approval.
While Water Resources Minister Devineni Umamaheswara Rao is the chairman of the APWRD Corporation, Secretary Shashi Bhushan Kumar is member along with Finance Secretary and others nominated by the State government.
Pending Central funds
The Central government had to release ₹3,793 crore to the State government for execution of the project, but the release of only ₹971 crore was in process. The file for the release of ₹971 crore was signed by the Union Water Resources Minister on August 25.
Now, it was up to Nabard to raise the funds. The State government was expecting release of funds in September first week.
“It is not possible to give a time-line for release of the remaining ₹2,422 crore as the Central Water Resources Department is asking new reports and certificates from time to time. Certificate of Expenditure is the latest hurdle the Centre has placed for the release of funds,” an official said.
