Andhra Pradesh Government has so far spent 3500 Crores from its own treasury and is waiting for the Central Government to Reimburse it. On the other side, Center is still committed only to pay for the project according to the estimates of 2011 and is sitting on the proposals of the latest estimates.
The state government has requested the Union Government to okay the latest proposals by 20th of this month or there may be a danger of the project works getting stalled. But in the wake of TDP pulling out of NDA and Chandrababu unifying the anti-BJP forces, the Center is unlikely to do that any sooner.
The cost of the Multi-Purpose Irrigation Project which was initially estimated at 16,010.45 Crore increased to 57,940.86 Crore largely due to the increase of rehabilitation due to 2013 Land Acquisition Act which came into effect after that. The State Government alleges that the Union Water Resources Ministry is passing the time by asking the same queries again and again.
