Vijayawada

Polavaram: Centre to bear only irrigation component cost

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The Central Government is ready to re-imburse everything the State Government has spent on Polavaram Project from the cut-off date of April 1, 2014.

In the detailed statement made by Union Finance Minister Arun Jaitley and released to the media on Thursday, the Centre said it would provide 100 per cent of the “remaining cost” — for only the irrigation component — retrospectively from April 1 of the year the State was bifurcated.

The State Government will be paid the entire Rs 1,713 crore it had spent till date. The Union Minister said the Centre would allow the State Government to implement the project as per the recommendations of the NITI Aayog because it (State) had “an interest in it”. The Centre would use NABARD as a special purpose vehicle to do it.

The Polavaram Project is on Godavari River near Ramayyapeta Village about 42 km upstream of an anicut constructed by Sir Arthur Cotton. On completion, the dam and its canals will irrigate 2.91 lakh hectares (7.2 lakh acres) and supply drinking water to a population of 28.50 lakh living in 540 villages and divert 80 tmcft of water to the Krishna River Basin. The project was given investment clearance by the Planning Commission for Rs 10,151 crore in 2009. In January 2011, the Advisory Committee of the Ministry or Water Resources approved the cost at 2010-11 price level as Rs 16,010 crore. Prior to bifurcation, the project was implemented by A.P. with Central assistance under AIBP.

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Printable version | Dec 16, 2019 6:10:50 PM | https://www.thehindu.com/news/cities/Vijayawada/Polavaram-Centre-to-bear-only-irrigation-component-cost/article14630694.ece

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