In a significant development for Andhra Pradesh, the Modi government has announced the release of advance funds for the Polavaram project during the Dussehra festival. The Ministry of Water Resources has sanctioned ₹2,348 crores for the current financial year, marking the first time such funds have been released for the project. However, this announcement comes with specific conditions that must be met.
Chief Minister Chandrababu Naidu’s recent visits to Delhi appear to have yielded positive results. During these visits, he engaged in discussions with Prime Minister Modi and several central ministers regarding crucial issues, including the development of Andhra Pradesh, pending financial allocations, and the completion of the Polavaram project.
Conditions Imposed by the Central Government
The central government has stipulated that the subsequent tranche of funds will be contingent upon the expenditure of 75% of the allocated ₹2,348 crores. The government has indicated that further releases will only occur if the construction activities for the Polavaram project progress according to predefined targets. Should there be any delays, the state government will be required to provide justifiable reasons.
The state government is also expected to communicate its strategies for improving the project’s status to both the Polavaram project authority and the central Ministry of Water Resources. Additionally, a coordination mechanism should be established to facilitate the completion of any pending work on the project.
Furthermore, in line with the central cabinet’s approval, the revised construction schedule for the Polavaram project must be incorporated into the agreement between the central and state governments. The funds currently being allocated should be utilized exclusively for the works specified in the agreement.
To ensure transparency, the state’s water resources department must obtain verification from the Polavaram project authority confirming that the funds are allocated to the designated projects. This verification must then be forwarded to the central Ministry of Water Resources.
Finally, the state government is required to guarantee that accounts related to these funds are accessible to CAG officials, with the project authority mandated to submit quarterly reports on financial progress to the central government.