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Blow to Polavaram: CM Jagan asks for Rs 55,548 Cr; Centre offers just Rs 12,911 Cr

Press releases by the Andhra Pradesh government said that Chief Minister Jagan Mohan Reddy, in his recent meeting with PM Modi, asked for Rs 55,548.87 crores for completing the inordinately-delayed Polavaram National Irrigation Project. However, the Union Finance Department has recently offered to give only Rs 12,911.15 Cr. Questions are asked why the ruling YSRCP in AP was not using its strength in Rajya Sabha to get Polavaram funds.

Andhra Pradesh: Another setback to Polavaram National Project
Andhra Pradesh: Another setback to Polavaram National Project

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Published : Jul 10, 2023, 7:57 AM IST

Amaravati (Andhra Pradesh): The Union Finance Department has recently decided that only Rs 12,911.15 crores will be given to the Polavaram National Project in Andhra Pradesh. In an official note, it has been stated that the amount approved by the Union Cabinet in 2017 for the construction of the project will be given in addition to this amount.

On the one hand, press releases by the State government said that Chief Minister Jagan Mohan Reddy, in his recent meeting with the Prime Minister, asked for Rs 55,548.87 crores for Polavaram. However, the Prime Minister's Office has never officially revealed what the Chief Minister asked. But the center is saying that it will give only Rs 12,911 crore.

'If the gist of the Finance Department's order says that the Center is not willing to give full funds to Polavaram, why does CM Jagan not demand the Center strongly? Why won't he open his mouth? During elections, he said he would get special status and Polavaram funds if 25 MP seats were given'. These are the questions cropping up now.

CM Jagan had made many big statements in the past. 'Rs 20,000 crores are needed to implement the relief and rehabilitation package under the Polavaram project up to the contour level of 45.72. Funds can be given to the displaced people only if the center gives. If they don't give it, where can we get it from? If it is Rs 500 crore or Rs 1,000 crore, I will give whatever I have in my hands. Rs. 20 thousand crores means that the center should definitely help. If they don't have money, who else will? We are fighting with the Center for that," the CM said while addressing the evacuees when he visited Chintoor and Velerupad on July 27 last year.

Now, the Polavaram issue is back to square one. The inordinate delay is continuing in the project implementation.

  • The Union Cabinet approved the Polavaram project for the first time at Rs 16,010.45 crore as per 2010-11 prices.
  • Later, the Council of Ministers once again agreed to give Rs.20,398.61 crore as per 2013-14 prices.
  • In the Union Cabinet meeting held on March 15, 2017, it was decided that 100% of the funds spent on Polavaram under the Irrigation Department will be reimbursed by April 1, 2014. It has made it clear that no additional burden will be given after that.
  • That government has submitted DPR-2 to give more than Rs.55 thousand crores as per 2017-18 prices for the Polavaram project.
  • Polavaram Authority has made several queries and submitted it to Jal Shakti Department. After that the department constituted a technical advisory committee. After several discussions, they approved the estimated cost of Polavaram at Rs.55,548.87 crores at 2017-18 prices in February 2019.
  • At one time, the Center constituted a Revised Cost Committee on Polavaram. They examined and approved the estimated cost of Rs.47,725.24 crores for the Polavaram project.
  • CM Jagan said in July that he still needs Rs.20 thousand crores for rehabilitation. The Center has clearly said that the Rs.20 thousand crore will not be given by July this year. It means that if the Center has to give another Rs.35,150.26 crores, it has decided to give only Rs.12,911.15 crores.

CM Jagan said that the state is not in a position to fund it. Now it has been found that the Center is giving only Rs 12,911 crore. In these circumstances, doubts are being expressed whether the future of Polavaram has become uncertain. The Center should approve the DPR for the Polavaram project for the two phases together with the resettlement package of Rs.55,548.87 crores. That work has not been done for four years.

Despite strength in Rajya Sabha

Any law passed by the Central government, the approval of Lok Sabha and Rajya Sabha is mandatory. Even though the BJP has sufficient strength in the Lok Sabha, it does not have the majority in the Rajya Sabha. In many cases the strength of YSRCP Rajya Sabha members was needed by the Centre. It remains to be seen how the YSRCP leaders would answer the public as to why the Chief Minister could not use his party strength in Rajya Sabha to achieve Polavaram funds and special status for AP.

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