Lok Sabha Question No. 115 (STARRED), answered on 2023-07-27
Subject: Funds for Polavaram Project
Ministry: JAL SHAKTI
Asked by: Balashowry Vallabbhaneni

| GOVERNMENT OF INDIA MINISTRY OF JAL SHAKTI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| DEPARTMENT OF WATER RESOURCES, RIVER DEVELOPMENT &GANGAREJUVENATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| LOK SABHA STARRED QUESTION NO. *115 ANSWERED ON 27.07.2023                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| FUNDS FOR POLAVARAM PROJECT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *115 SHRI BALASHOWRY VALLABHANENI Will the Minister of JAL SHAKTI be pleased to state: (a) whether a high level meeting has recently been held on the issue of releasing of funds for Polavaram project and if so, the details thereof; (b) whether the Ministry has accepted the proposal of the State Government of Andhra Pradesh releasing Rs. 10,000 crores as ad hoc money for taking up work of Polavaram irrigation project and so, the details thereof along with the steps taken/being taken by the Ministry to release Rs. 10,000 crores as ad hoc grants to the State; (c) whether it is true that the Finance Ministry has approved releasing Rs. 12,911 crores for |
| for if Polavaram Project recently and if so, the details thereof; (d) whether it is also true that Rs. 17,140 crores is required to complete the first phase of and Rehabilitation (R&R) package covering 36 affected villages; (e) if so, the steps taken by the Ministry to get the remaining amount of Rs. 4,200 crores approved the Cabinet; (f) the time by which the said amount is likely to be released; and                                                                                                                                                                                                                                                             |
| Resettlement by                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (g) the steps taken by the Ministry to release arrears of Rs. 1300 crores already spent on the said                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| by the State Government of Andhra Pradesh?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| THE MINISTER OF STATE FOR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ( SHRI BISHWESWAR TUDU )                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| JAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| SHAKTI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ANSWER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (g) OF LOK SABHA STARRED QUESTION  NO.  *115  TO  BE  ANSWERED  ON  27.07.2023  REGARDING  'FUNDS  FOR POLAVARAM PROJECT'.

(a) Polavaram  Irrigation  Project  (PIP)  has  been  declared  as  a  National  Project  under  the  Andhra Pradesh Re-organisation Act, 2014. As per approval given by Ministry of Finance in 2016, Government of India is to provide 100% of the remaining cost of the irrigation component only of the project for the period starting from 01.04.2014. Further, Government of Andhra Pradesh is implementing the project on behalf of Government of India.  PIP, being a National Project, is monitored in meetings held from time to time at different levels in Government of India, including meetings chaired by Hon'ble Minister of Jal Shakti.

(b)  &  (c) Department  of  Expenditure,  Ministry  of  Finance,  has  vide  Office  Memorandum  dated 05.06.2023, communicated no objection to additional funding for completing the balance work of PIP for filling of water up to 41.15 meters, amounting to Rs.10,911.15 crore and Rs. 2,000 crore for cost of repairing  damages  caused  to  PIP  by  flood,  subject  to  the  approval  of  the  Cabinet,  by  modifying  the earlier  Cabinet  decision.  The  proposal  of  Government  of  Andhra  Pradesh  for  ad  hoc  release  of  Rs. 10,000 crore is subsumed in the above no objection of Department of Expenditure.

(d)   to  (f): Implementation of PIP is being considered in two phases. In this regard, Government of Andhra Pradesh has, vide letter dated 05.06.2023, submitted revised cost estimate for balance works for phase I, i.e., for storage of water upto EL 41.15 m, for Rs.17,144.06 crore. The proposal includes the cost of rehabilitation and resettlement of additional 16,642 project affected families of 36 villages which are to be partially affected in phase I itself, instead of phase II as per earlier plan.  The said proposal is required to be firmed up and approved by the Government of India. Thereafter, the releases are to be processed from time to time as per the approved modalities, depending on the physical and financial progress achieved on PIP by the implementing agency, i.e., Government of Andhra Pradesh.

(g): Government of India has been reimbursing, from time to time, the expenditure incurred by the Government of Andhra Pradesh on the project with effect from 01.04.2014. The reimbursement is done upon receipt of verified  bills  and  recommendations from the Polavaram  Project Authority  (PPA) and Central Water Commission (CWC).  Since 01.04.2014 up to May, 2023, an amount of Rs. 14,969.36 crore has been reimbursed to Government of Andhra Pradesh by Government of India, against its total approved liability of  Rs. 15,667.90 crore as balance cost of irrigation component only of PIP, at 201314 price level.

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