Hon’ble Chief Minister reviewed the latest developments on the reimbursement of balance expenditure incurred by Govt of AP to a tune of Rs. 4013.65 crs, out of which Rs. 2234.288 crs was proposed for EBR (Extra Budget Release) by Ministry of Finance (MOF)Govt of India (GOI) to Ministry of Jalshakthi (MOJS) GOI in which it has been stated by the MOF Government of India, that cost of irrigation component in Revised Cost Estimate shall be construed as approved by Polavaram Project Authority at Rs.20398.61 crs as on 01/04/2014, which the MOF Government of India has asked Polavaram project authority (PPA) to confirm.

Hon’ble Finance Minister, Hon’ble Minister for Water Resources Department, officials of Finance and Water Resources Departments of AP briefed the Hon’ble Chief Minister about their discussions in the Finance Dept, Water Resources Department and meeting with Hon’ble Finance Minister, GOI. It is informed that the Hon’ble Minister was requested to release the funds for reimbursing the expenditure incurred by the Govt of AP at an early date for speedy completion of the National Project, for which Hon’ble Minister, GOI has responded positively.

It was discussed at the meeting that the entire cost of the project which is considered by the Polavaram Project Authority and approved by CWC for Rs. 55448.87 crs at 2017-18 price level and further the Revised Cost Committee (RCC) constituted by the Govt of India has approved the cost of the project as Rs. 47725.74 crs which has been accepted by the MoJS and recommended to MoF shall be considered for completion of the project.

The Hon’ble Chief Minister emphasized that the cost of the component LA and R&R itself is costing around Rs. 29000 crs as approved by PPA, CWC and MoJS and therefore capping the entire project cost at Rs.20398.61 crs, has no relevance and it is impossible to complete the project with that cost.

Further Hon’ble Chief Minister stressed that as Polavaram is declared as a National project, it is the responsibility of the Govt of India as per the APR Act, 2014 and as per the Central Cabinet decision to complete the project. However, The Govt of AP is only executing authority as the project is monitored by PPA under GOI. It is also noted that LA, R&R and Works are to be considered for payment at the rates, rules and provisions existing on the date of execution and also as recommended by PPA, CWC and MOJS

The Hon’ble Chief Minister directed the officials to take up the issue immediately with the Govt of India at the appropriate level duly stating that Revised Cost Estimate as approved by the Organizations of GoI i.e. PPA, CWC and RCC, should be considered in the interest of completion of the project and in the interest of people of AP.

The internal correspondence of GOI during September, 2016 and Central Cabinet Memorandum approved during March, 2017, which are being referred now for capping the expenditure of Polavaram project has no relevance now and it is surprising why the then Govt of AP kept silent on the adverse developments which are against the interest of the people of AP.

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