The central government in a major decision during the Andhra Pradesh Chief Minister Chandrababu Naidu’s Delhi visit has agreed to release ₹2,800 crore for building the Polavaram project. Out of this allocation, ₹800 crore has been provided to extend the scheme to the earlier regions and ₹2,000 crore as an advance. The decision brings a relief to the state government which has been calling for financial assistance from the Center for this long overdue project.
Financial Support for Polavaram
A month ago, the Union Cabinet cleared the second Detailed Project Report (DPR) for Polavaram with the overall cost planned at ₹30,436 crore. As a part of it, ₹2,800 crore have been disbursed as part of this approval. These have been over and above the ₹12,157 crore, which have been sanctioned under the first DPR. The money will be disbursed over the two-year budget, ₹6,000 crore for this fiscal year and ₹6,157 crore for the next. The implementation has been going on for several years and ₹2,800 crore was recently released to further the project further.
Approval of the Second DPR Worth ₹30,436 Crore
The demand for Polavaram is not new for the people of Andhra Pradesh; indeed, this has been their demand for quite some time now. While the idea of this project was discussed even before Indian independence, the governments started taking it in earnest in 2004. Originally, the union minister for road transport and highways had put the construction cost to ₹10,000 crore, which, over the years, has risen.
In Modi’s first regime, the central government sanctioned the first DPR to assess the project cost, pegged at ₹18,279 crore. For license and resettlement work, on the other hand, the costs skyrocketed as a firm began to acquire more land. The second DPR, which put the cost at ₹30,436 crore, was filed in 2018. This DPR was approved recently in 2023 in the central budget under Modi’s third term provided the balance amount of ₹12,157 crore will be disbursed within the next two years.
Polavaram Costs Soaring to ₹60,000 Crore
The minister also said that the total expenditure for the Polavaram project had gone up substantially and touched the stage of construction, land acquisition, and rehabilitation of project-affected persons. In the first DPR drawn in the FY 2018 with an approximate project cost of ₹18,257 crore, the second DPR prepared suggested approx ₹30,436 crore. Today, it has emerged that the total expenses are expected to cross ₹60000 crore, ‘mainly because land acquisition costs and rehabilitation costs are rising’ five years later.
However, this project has been facing increasing costs and the central government has demonstrated its willingness to fund it since it is a national priority project. The state government, being with NDA both at national and state level, believes that the central government will go on financing the project. The third DPR is planned to be prepared soon to meet extra financial needs to implement this law.
₹23 Crore Released for Project Visitors
If we recall the 2018-19 period the TDP government came up with free buses and food to the Polavaram project site visitors. But after the change of government, this money was not paid to the contractors and the contractors therefore sought redress in the High Court. The court gave the contractors the victory which the government was required to pay the contractors with 12 percent interest.
Similarly, the current government has now provided ₹23 crore to discharge such arrears. This payment is an assurance of the government’s ability and willingness to meet its contractual financial responsibilities for this project and other incidental expenses in providing the public with access to this site.
Conclusion
The Polavaram project is one of the important development projects for the state of Andhra Pradesh as a lot of time and a vast amount of money will be spent to complete this project. The latest ₹2,800 crore the central government has released for the project is a good boost the project requires for its progress. Total costs have gone up dramatically; however, the state government still expects the Center to go on funding the project since it is a national project. Further construction of this mega project needs the active participation of both the state and central government funding to make the vision turn into reality for the people of Andhra Pradesh.
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