RBI - Polavaram ProjectThere are reports that the Central Government has gone back on the complete funding of the Polavaram Project. Union Finance Ministry is reportedly pressurizing the State Government to agree for 2014 estimations of 20,398 Crore.

It has served an ultimatum that the pending funds will be released only if the offer is accepted. According to the current estimates, the project will need 47,575 Crore for completion. The cash-strapped Andhra Pradesh Government can not afford to complete it if the Center backtracks.

On the other side, a crucial General Body meeting of Polavaram Project Authority (PPA) is going to happen on November 2nd with Central Government’s new proposal as the main agenda. One issue requires the ratification of the PPA to make the Center’s proposal final.

If the PPA approves it, Polavaram will remain a dream forever. Things may change if the PPA sends a note that the proposal is untenable and the Center should fund the project completely. Let us see if the AP Government officials can push for it. As of now, Jagan Government seems to be focused more on pushing the blame on TDP than fighting with the Center for our right.