Lok Sabha Question No. 3889 (UNSTARRED), answered on 2019-01-03
Subject: Release of Balance Fund for Polavaram Project
Ministry: WATER RESOURCES, RIVER DEVELOPMENT AND GANAGA REJUVENATION
Asked by: KONAKALLA NARAYANA RAO

## GOVERNMENT OF INDIA MINISTRY OF WATER RESOURCES, RIVER DEVELOPMENT & GANGA REJUVENATION

## LOK SABHA

## UN STARRED QUESTION NO. 3889

ANSWERED ON 03.01 .201 9

## RELEASE OF BALANCE F UND FOR POLAVARAM PR OJECT

## 3889. SHRI KONAKALLA NARAYANA RAO

Will  the  Minister  of  WATER  RESOURCES,  RIVER  DEVELOPMENT  AND  GANGA REJUVENATION be pleased to state:

(a)  whether  it  is  a  fact  that  the  Government  has  decided  to  pay  attention  to  the Polavaram Project and if so, the details thereof;

(b) whether the Government has received the DPR -II of Rs.57,940 for approval and request from Andhra Pradesh for release of these balance funds immediately;

(c) if so, the response of the Government in this regard; and

(d) the steps being taken by the Government to complete the project as scheduled by May, 2019?

## ANSWER

## THE  MINISTER  OF  STATE  FOR  WATER  RESOURCES, RIVER  DEVELOPMENT  AND GANGA REJUVENATION & PARLIAMENTARY AFFAIRS

## ( SHRI ARJUN RAM MEGHW AL )

(a) to (d) PolavaramIrrigation Project (PIP) has been declared as National Project under S 90  of  Andhra  Pradesh  Re - organisation  Act,  2014. Ministry  of  Finance  vide  letter  dated 30.09.2016 has communicated the approval for funding of the project by the Central Gover t in the following manner: -

' It  will  provide  100%  of  the  remaining  cost  of  the  irrigation  component  only project  for  the  period  starting  from  01.04.2014  to  the  extent  of  the  cost  of  the component on that date .'

Accordingly,  the Government  of  India  is  reimbursing  the  expenditure  incurred  by  t Government of Andhra Pradesh (GoAP) on the PIP. The balance cost of irrigation componen the project was Rs. 7158.53 crore when the project was declared as National Project wi f rom 1.4.2014 as per the presently approved cost of the project.  Thereafter, Central (CA)  of  Rs.6764.16  crore  has  been  released  from  time  to  time  as  per  eligible  pr recommended by Polavaram Project Authority (PPA) and Central Water Commis sion (CWC).

Also,  a  proposal  for  release  of  Rs  393.51  crore  was  forwarded  by  PPA/CWC  f reimbursement which was referred to Ministry of Finance.  Ministry of Finance vide it dated 26 th July,2018 has sought certainclarifications pri marily on two major issues -

(i) Audited Statement of Expenditure incurred by the State on the project till 31.03.2014 & (ii) Status of Revised Cost Estimates (RCE) of the project at 2013 - 14 Price Level.  The State Govt.  has  not  submitted  the  Audited  Statement  in  this  regard.    Further  release  of dependent upon compliance by the State Government on the observations of Ministry of Finance.

The Government of Andhra Pradesh submitted the second RCE amounting to Rs.57941 crore  at  2013 - 14  Price  Level  to  CWC  during  January  2018.    The  same  was  examined  and subsequently  set  of  observations  were  communicated  to  the  Project  A uthorities  from  time  to time.  The approval of RCE is dependent upon satisfactory compliances by the State Gover on the observations of CWC/CEA.

As intimated by the GoAP, the State is providing required funds for the payments PIP on top priori ty and is committed to completing the Polavaram project by December 2019.

Above  apart,  this Ministry  has  taken  a  number  of  steps  for  expediting  the  works  whi include:

- ( i ) Dam  Design  and  Review  Panel  (DDRP)  under  the  chairmanship  of  a  former  Chairman, CWC and an Expert Committee headed by Member (WP & P), CWC have been constituted on 13.6.2016 and 10.3.2017 (reconstituted on 07.06.2017) respectively to carry out regular monitoring of the project and to strive better coordination DDRP/Contractor/PPA/CWC design  units/Central  Water  and  Power  Research  Station (CWPRS) in respect of various issues related to design and implementation of the pro
- ( ii ) A  Monitoring  Committee  for  Rehabilitation  and  Resettlement  works  with  Secreta Ministry of Tribal Affairs, G overnment of India as its Chairperson has also been constitut on 12.9.2017 to oversee the implementation of Land Acquisition and R & R works.
- ( iii ) PPA is mandated to convene regular meetings to review the work progress and resolve pending  issue  for completion  of  the  project  as  per  schedule.    Also,  Water  and  Pow Consultancy Services (WAPCOS) working as Project Management Consultant (PMC) for PPA, monitors the implementation of the project regularly.
- ( iv ) PPA  has  engaged  Central  Soil  and  Materials  Resear ch  Station  (CSMRS),  New  Delhi  as quality consultant for the project which carries out review of all the Quality Co conducted by the Project Authorities.

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