Crucial meet on Polavaram project bills slated for Nov 2

AMARAVATI: The Polavaram Project Authority (PPA) will discuss on November 2 the clarification sought by Union ministry of Jal Shakti regarding reimbursement of project bills.The Union finance ministry’s directive to the Jal Shakti ministry on giving approval to the Polavaram project cost based on the 2013-14 price level has become a cause for concern for the state government as well as Union Jal Shakti ministry as the latter is the nodal agency for completing the national project.
The finance ministry had asked the Jal Shakti ministry to see that PPA gives its nod to the total cost of the project at Rs 20,389 crore fixed based on 2013-14 price level.
Jagmohan Gupta, joint secretary in the Jal Shakti ministry, is likely to attend the PPA meeting to be chaired by CEO Ayyar.
AP special chief secretary (water resources) Dr Adityanath Das is also attending the crucial session to raise objections about the finance ministry’s directive.
The state government is gearing up to give a detailed presentation to explain how and when the project cost has been revised and approved at various levels, including PPA. PPA had agreed to revise the project cost based on the 2017-18 price level. After going through various reports presented by the state government in the last few years and its own field studies, PPA had revised the project cost to Rs 47,725.7 crore.
The price was arrived at after consulting senior officials in the Jal Shakti ministry and Technical Advisory Committee constituted from different ministries.
The Jal Shakti ministry is in a quandary over the finance ministry’s advice to approve the project cost based on 2013-14 price level which leaves a gap of nearly Rs 30,000 crore.
The government will ask the Jal Shakti ministry how it plans to complete the project by approving the project cost at Rs 20,389 crore. The Centre has already reimbursed nearly Rs 8,000 crore and plans to wind up the financial assistance with the payment of the balance amount.
“The emergency meeting has been called to discuss the clarification sought by the ministry of Jal Shakti. We have to see how it transpires,” said a senior state government official.