Polavaram Project – Burning Issues – Free PDF Download

The Observation

• Polavaram Project is an under construction multi-purpose irrigation National project on the Godavari River in the West Godavari District and East Godavari District in Andhra Pradesh.
• The project has been accorded “national project” status by the Union Government of India

The Observation

• It is estimated that, Polavaram project will irrigate 2.91 lakh hectares (thus promising to make the state drought-free), generate 960MW of hydro power, and provide drinking water to 28.5 lakh people in 540 villages and Visakhapatnam city.

The Delayed Project

• Polavaram project was first conceptualized in 1941 by the then Madras Presidency. Diwan Bahadur L. Venkatakrishna Iyer, who was also Chief Engineer in the Presidency’s irrigation department. The project, when it was conceived was estimated to cost Rs 129 crore.
• In 1980, then CM of AP T. Anjaiah laid the foundation stone for the prestigious Polavaram irrigation project.
• In 2004, then CM of AP Y. S. Rajasekhara Reddy performed bhoomi pooja with the estimated cost about 10000cr.
• After decades of delays the main Polavaram Dam irrigation project construction began under N. Chandrababu Naidu however, in 2014 after reorganization of AP more problems have emerged.

The Delayed Project

• Andhra Pradesh Reorganisation Act of 2014 accorded the project national status, making it mandatory for the central government to pick up the tab, which was Rs 10,151 crore when YSR brought it to life in 2004-05.
• Polavaram Project Authority was constituted by the Union Cabinet in 2014.
• In 2017, it was reported that the project contractor, Transstroy was seeking a deadline extension and a budget escalation.
• In 2018, state government signed a new contract for the project spillway, spill channel and stilling basin concrete work with Navayuga Engineering.
• Since then , overall project completion is about 70% till 2019.

What now?

• It is unlikely to be completed by April 2022 (the revised target date), despite being the dream project of YSR’s son and incumbent CM Y.S. Jagan Mohan Reddy.
• Now, the Polavaram has become the bone of contention between Jagan Mohan and the Modi dispensation. 

The problem areas

The problem areas

• Cost of rehabilitation
  • Increased families to be rehabilitated from 44,000 in 2005-06 to 1.05 lakh in 2020. The central government has only committed to picking up the tab for only the irrigation component of the project.
  • The current Jagan govt, blames the previous Naidu allegeging complete neglect of land acquisition and rehabilitation part which forms almost 50 per cent of the project.
  • Jagan govt also highlights loopholes in the construction part too which took an entire season to be rectified, causing more delay and cost overruns.

The problem areas

• Cost of rehabilitation
  • In November 2020, the Jal Shakti ministry capped the project fund approval to Rs 20,398.61 crore, based on the 2013-14 estimate, which had been accepted by Naidu without taking into account the land acquisition and relief and rehabilitation costs. 

The problem areas

• No allocation this year
  • No funds have been set aside for the polavaram project in the 2021-22 Union Budget, even after the Jal Shakti ministry had agreed.
  • There was a protracted bureaucratic wrangling over the newly revised estimate of Rs 55,000 crore pegged for it by the state government since 2017.

The problem areas

• ‘Reimbursement only’ policy of Jal Shakti
  • The money does not come easily. It takes a circuitous eight-step route to reach the state government.
  • Its expenditure statements first go to the Polavaram Project Authority (PPA), from there to the Jal Shakti ministry, which passes them on to the finance ministry for it to authorise the National Bank for Agriculture and Rural Development (NABARD) to raise a loan credited to the National Water Development Agency (NWDA). The agency finally transfers the money to the PPA for onward movement to the state government.
  • The reimbursement process has indeed become an irritant. Jagan wrote a letter in sept 2020, Complaining about this policy to the Jal Shakti ministry.

The problem areas

• Need money to spend first to later reimburse it
  • The Jagan government in is facing criticism from the Opposition for spending recklessly on the chief minister’s ‘welfare schemes’.
  • According to TDP, the YSRCP govt spent a significant part of its budget for the welfare schemes instead of spending them on developmental works. .
    • YSRCP govt spent spent about Rs 80,000 crore in the last 20 months on Jagan’s freebie schemes such as YSR Pension for senior citizens, YSR Rythu Bharosa, financial assistance for farmers, and Jagananna Amma Vodi.

A Way forward needed

• The Centre-state slugfest has left the polavaram project in a state of limbo.
• Leadership changes in the state, companies managing the project lapsing, pending reimbursements and disagreement of cost estimates have exacerbated the delay more and more.
• The ‘Lifeline of Andhra Pradesh’ is in desperate need of life support.

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