Andhra Pradesh government had sent a status report to the Central Government regarding the progress of the Polavaram Project. In the report, the state brought to the notice of the Center that it had spent 8391.86 Crore on the project. Before 2014, 3344.29 Crore was spent on the project. Back then, the project was under Accelerated Irrigation Benefits Programme scheme.
According to that Center should bear 25% expense of the project. Between 2008 and 2014, Center should reimburse 836 Crore spent by AP government. So far, only 562.47 Crore is given. The remaining 273.53 Crore is pending till date. The Center agreed to fund 100% of the project since the day it was recognized as the National Project.
From that day, the state government had spent 2843.07 Crore on the project and the Center had to reimburse 1893.07 Crore of that. That will mean that the Center should reimburse 2136.6 Crore for this project till date. The state government is waiting for this funds to be released by HUDCO which will ease the financial crunch of the state to some extent.
