Finance Minister’s assurance on Polavaram gives fresh hopes on future of project

Union Finance Minister Nirmala Sitharaman commits to financing and completing the Polavaram Irrigation Project in Andhra Pradesh.

Union Finance Minister Nirmala Sitharaman has asserted that the Union government was committed to financing and early completion of the Polavaram Irrigation Project in Andhra Pradesh.

Ms. Nirmala Sitharaman said this in her budget speech on July 23 (Tuesday).

“Our government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country’s food security as well,” she said in the Lok Sabha. There was, however, no specific mention of funds being allocated for the project. 

The announcement has given fresh hopes for the people of Andhra Pradesh as the future of the project hangs in balance due to the damages it suffered in 2019-20 due to floods.

Meanwhile, Andhra Pradesh Water Resources Minister Nimmala Ramanaidu urged the Central Water Commission (CWC) to accord permission for designs without compromising safety. He met CWC Chairman Kushvinder Vohra at New Dehi on Tuesday.

Stressing the need to complete the project at the earliest, Mr. Ramanaidu said that a loss of ₹10,000 crore per annum would have to  be borne in case the project was delayed. An estimated ₹3,000 crore loss towards stabilisation of ayacut, ₹3,000 crore towards delay in energy generation, ₹2,000 crore crop loss in the Godavari districts due to floods, and ₹2,000 crore cost escalation per annum would take the total loss arising out of the project delay to about ₹10,000 crore per annum. The total loss in the next five years would be ₹50,000 crore, he said.

Responding to his request, Mr. Vohra said that the Union government prioritised the Polavaram project. The designs would be approved without any delay.