The Union Ministry of Finance has approved the proposal for sanctioning an additional amount of ₹12,911.15 crore for funding the ongoing Polavaram irrigation project across the Godavari in Andhra Pradesh.
Recently, the Union government released an amount of ₹10,460.87 crore towards bridging the revenue deficit gap for the 2014-15 financial year.
In an office memorandum dated June 5, 2023, L.K. Trivedi, Director (PFC-1 Division) at the Department of Expenditure, Ministry of Finance, approved the proposal for releasing ₹12,911.15 crore for the Polavaram project.
The Finance Ministry mentioned in the memorandum that it had no objection for releasing the additional funds of ₹10,911.15 crore for completion of the remaining work for filling water up to a height of 41.15 metres.
The Centre was also considering release of ₹2,000 crore towards the cost of repairing the damages caused to the Polavaram project by floods, it added.
For releasing the above funds, the Cabinet should give its approval.
At the same time, the Finance Ministry maintained that “this additional funding shall be limited to a maximum of ₹12,911.15 crore, or such lower amount as may be recommended by the Department of Water Resources, for the completion of the project up to 41.15 metres.”
For providing the additional funds, the Department of Water Resources, River Development and Ganga Rejuvenation was requested to draft a Cabinet Note, complete inter-Ministerial consultations and obtain approval of the Union Cabinet.
As per the request of the Government of Andhra Pradesh and recommendations of the Department of Water Resources, the Department of Expenditure, Ministry of Finance, issued these orders.
