Union Government releases funds of Rs 1981 crore for Polavaram irrigation project
Polavaram Project or Indira Sagar Project of Andhra Pradesh is expected to be completed by the year 2019.
Union Minister for Water Resources, River Development and Ganga Rejuvenation Uma Bharti on 26 December 2016 released the funds of Rs 1981 crore for Polavaram irrigation project to Andhra Pradesh Chief Minister N Chandrababu Naidu.
These funds were issued by the National Bank for Agriculture and Rural Development (NABARD). Other than Andhra Pradesh, Gujarat and Maharashtra were also sanctioned 463 crore and 830 crore rupees respectively.
Highlights of Polavaram Project
• Polavaram Project is also known as Indira Sagar Project.
• Polavaram project is aimed at irrigating additional 80 Lakh hectares of agricultural land.
• It is a multi-purpose project with an assessed Cultural Command Area of 2.91 lakh hectares and power generation potential of 960 Mega Watt(MW) .
• It also has a provision to supply 23.44 thousand Million Cubic Feet (TMC) of water as drinking water supply to Vishakhapatnam city and other areas.
• An inter basin transfer of 80 TMC water annually to Krishna River Basin was also envisaged.
• The project was given investment clearance by the Planning Commission of Rs 10151.04 crore in 2009. The current cost of the project at 2010-11 level is Rs 16010.45 crore.
• The project was under construction with Central Assistance under Accelerated Irrigation Benefits Programme (AIBP).
• The expenditure of around Rs 5135.87 crore was incurred on the project till March 2014 including the Central Assistance of Rs 562.469 crore provided under AIBP.
• Since the declaration of the Polavaram project as National Project in 2014, Rs 950 crore has already been released to Polavaram Project Authority till date.
• In order to meet the expenditure balance of Rs 2981.54 crore, arrangement of funds from NABARD was made.
• The project is expected to be completed by the year 2019.
The amount released is a part of the loan from NABARD that was sanctioned from the Long Term Irrigation Fund (LTIF) under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
Union Finance Minister Arun Jaitley in his budget speech 2016 announced the creation of this dedicated Long Term Irrigation Fund (LTIF) in NABARD with an initial corpus of Rs 20000 crore.