Rs 250-crore boost to set up SPV for Polavaram project in Andhra

Hyderabad: The Centre has decided to release Rs 250 crore in this financial year for setting up of a Special Purpose Vehicle (SPV) for the Polavaram Irrigation Project. The SPVs are subsidiary firms typically used by major companies to isolate themselves from financial risk.

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This financial boost is in addition to the Rs 100 crore earmarked for the project in the Union Budget. The Andhra Pradesh Government and Chief Minister N Chandrababu Naidu had expressed disappointment that the Centre had ignored the state’s demands to allocate more funds for Polavaram and had described the Rs 100-crore allocation as paltry.