Apart from sanctioning ₹12,911 crore for completion of the Polavaram irrigation project, the Union government has promised the Government of Andhra Pradesh to remove certain restrictions on payments, consider the latest price levels, and extend financial assistance for the damages caused due to unexpected flooding in the Godavari.
“There are three major points in the Office Memorandum issued on June 5, 2023, by the Finance Ministry,” Shashibhushan Kumar, Principal Secretary, Water Resources Department told The Hindu.
“The Central government has removed the component-wise restriction on payments. This apart, it has also accepted the proposal to fund the project as per the cost prevailing now,” he said.
Earlier, the Central government was funding the project based on the old price levels, which resulted in a loss to the State government.
“Reimbursements will now be made as per the latest price levels. The ₹2,000 crore out of the total ₹12,911 crore sanctioned, which is towards the cost of repairing the damages caused to the project due to the floods, is as per the tenders called recently,” Mr. Shashibhushan Kumar explained.
And, finally, it will put an end to certain apprehensions and criticism that the Central government may not provide money for the partially damaged diaphragm wall repair works.
“The Office Memorandum clearly says that the Government of India is giving funds for repairing the damages as well,” the official said.