If there is any positive in the Special Package offered by the Central government, that is the assurance to bear the 100% expense of the Polavaram Project from the date it became a National Project. Center will be taking loan from NABARD for the project and it will repay it. The loan will be added to Center’s FRBM limit.
However, it is said that Center wants the state government to give the Power Project in Polavaram to itself. Polavaram Project will generate 960MW of Hydel Power which is the cheapest available power in the market right now. This Power Project will easily generate 2500-3000 Crore income every year.
Center wants that for itself and in a way, that will recover its investment in Polavaram Project. But the state government refused to give that way and we are told that the Center has clarified that in that case, it will not fund the construction of this Power Project even though it is a part of Polavaram Multi Purpose irrigation project.
