Finally, there is some clarity on the funding for Polavaram Project. The Central Government has agreed to fund all the expenses of the project from 2014 on the day which Polavaram is declared as a National Project. NABARD earlier clarified that it will start funding the project once Central government writes it a letter.
However, the Union Finance Ministry is sitting on it for a long time. Finally, in the meeting between the Union Water Resources Officials, Union Finance Department Officials and the State government officials the other day, Water Resources Department has agreed to write a letter to NABARD about the funding. National Water Development Agency will enter into an agreement with NABARD on this.
Polavaram Multi-Purpose Irrigation Project comes with a total capacity of 194 TMC which will irrigate about Five Lakh Acres over Two Crops Every year. The Project will also generate 960MW of Hydel Power which is the cheapest available power in the market right now. Hence the project is said to be very beneficial for the state and is treated as the ‘Life Line’.