As per the promise given in the AP Reorganization Act, the central government has released funds of Rs.2,800 crore for the Polavaram project. However, the clear information under which this amount has been released is yet to be known.
According to the project officials, Rs.800 crores have been released under reimbursement of old dues and Rs.2,000 crores as advance for undertaking the works. It is known that Polavaram was declared as a national project in 2014 during the bifurcation of the combined States.
After the bifurcation of the state, the construction work of the project was taken up by the state government. If the funds are spent first and the works are done, after the bills are sent, the center will examine them and release the funds step by step.
The central government last month approved the new DPR of the project with a cost of Rs 30,436 crore after the formation of the new government in the state. With this, there is an opportunity to get an additional amount of Rs.12,157 crores from the Center in addition to the previously given funds.
The Center has given a green signal to sanction Rs.6,000 crores in the current financial year and Rs.6,157 crores in the next year. But, the officials say that up to Rs.7,000 crores are needed in the current financial year.
Meanwhile, dues of Rs.1,615.47 crore are due from the Center in connection with the Polavaram project works. However, while the government has completed works worth Rs 1,615.47 crore, only Rs 800 crore has been paid to the contractor. Moreover, according to the old DPR, there was no opportunity to give those funds.
Now with the approval of the new DPR, there is flexibility to take funds. With this, it is reported that the state government has already paid and reimbursed Rs 800 crore. In addition to this, Polavaram officials believe that Rs.2,000 crores will be given as an immediate advance.
Also, during his meeting with the Prime MInister on Monday evening, Chief Minister Chandrababu Naidu has requested to restart the Polavaram project and to start the new diaphragm wall work in November as soon as the flood recedes and complete it by summer.
