The Centre Tuesday released Rs 12,911 crore more to Andhra Pradesh for the Polavaram project, which would enable the state to complete its first phase, including important components of the dam.
This is the second such tranche of funds released by the Centre for Andhra, after May 23, when it had fulfilled a long-pending demand of the state for Rs 10,460 crore as compensation towards revenue deficit suffered by it following its bifurcation in June 2014.
Days after that fund release, Andhra Chief Minister Y S Jagan Mohan Reddy and several MPs of his YSRCP party were present at the Parliament inauguration function, which was boycotted by many Opposition parties.
Andhra goes to elections next year and the BJP is in need of partners in the state to make a mark. While the YSRCP has been a friendly party towards the Modi government since it came to power, the BJP has indicated that its options are open, with Union Home Minister Amit Shah meeting TDP chief N Chandrababu Naidu in New Delhi last weekend.
The TDP, which is seen as far behind the ruling YSRCP as of now, is also not averse to allies. It already has a potent one in Pawan Kalyan’s JanaSena Party (JSP), and with the BJP added to it, Naidu can hope to pose Jagan a challenge in the state elections.
Officials said that the Union Finance Department (Expenditure), wrote a letter to the State Water Resources Department Monday, approving the Polavaram funds.
On Tuesday, Jagan visited the Polavaram project site to review the progress of the construction.
Officials said that the Union government’s allocation of Rs 12,911 crore includes an additional Rs 2,000 crore for the project on account of a part of it getting washed away due to the Godavari floods. Besides, they said, the Centre directed funds for the project at the latest rates instead of 2013-14.
Jagan has met Prime Minister Narendra Modi and Finance Minister Niramala Sitharaman several times seeking Rs 10,000 crore to complete the construction of the Polavaram dam. The CM’s office said Tuesday that about 79% of the work on the Polavaram project is complete, and around 12,658 families that would be displaced by the project have been rehabilitated.
During his visit, the CM also inspected the civic infrastructure in the rehabilitation colonies.