CWC panel clears Rs. 55,548-cr revised cost estimate for Polavaram project.

The technical advisory committee of the Central Water Commission (CWC), late on Monday, announced that the revised cost estimate (RCE) of Rs. 55,548 crore for the mega Polavaram project on the Godavari in Andhra Pradesh has been cleared.

The mega irrigation project — often described as the lifeline of Andhra Pradesh after bifurcation — was mentioned in the AP Re-organisation Act, 2014, as a national project.

Now, the RCE will have to be cleared by the Union Finance Ministry and then the Cabinet will have to approve it, but a major hurdle has been crossed, according to AP irrigation officials. On Monday, Chief Minister N Chandrababu Naidu sat on a 12-hour dharna and hunger strike at the Andhra Bhavan in New Delhi, protesting against the alleged unjust treatment meted out to the State by the NDA government in the aftermath of bifurcation of AP in 2014.

The “inordinate delay in the clearance of the revised cost estimate of the Polavaram project” is also one of the bones of contention between the State and the Centre, after the ruling Telugu Desam Party (TDP) and the BJP parted ways last year.

According to the AP irrigation department officials, the cost of the project was pegged at Rs. 16,010.45 crore at 2010-11 rates and the State government had submitted a revised cost estimate, taking into account cost escalation, but it got stuck at the Central level.

The State government, which is executing the project, is demanding the immediate reimbursement by the Centre of Rs. 3,866.79 crore already spent on the project. But pending clearance of the revised cost estimate and revised DPR, the Centre is unable to release the funds, it is said.

Of the revised cost estimate, nearly Rs. 33,000 crore would have to be spent on relief and rehabilitation (R&R) package and the rest on the dam and canals.

HBL