NEW DELHI: The Center has released Rs.826.18 crore to the Andhra Pradesh state government as reimbursement for the expenditure incurred on the Polavaram project. The Union Finance Ministry issued an order on Tuesday about the release of funds for the project. The Center still has to reimburse Rs.1,755.80 crores to the state government and has released Rs.1,671.23 crore for the Polavaram project so far this financial year.

According to the State Bifurcation Act, the responsibility of the construction of this project, which was to be built by the Center at one hundred percent cost, was handed over to the state government on September 7, 2016, during the TDP regime. In this order, Chandrababu Naidu who was the chief minister then agreed to the condition set by the Center that it would pay only the remaining irrigation expenditure by April 1, 2014, as per the prices of 2013-14. The Center had also put a condition that it would reimburse the amount only after the state government initially spends for the project work which was also agreed upon by the TDP govt.

Although the Center is delaying the reimbursement, despite financial difficulties, Chief Minister YS Jagan Mohan Reddy is completing the Polavaram project as planned by allocating funds from the state treasury.

It is known that in every meeting with Prime Minister Narendra Modi, CM YS Jagan has been appealing for an early release of Rs.15 thousand crores for the speedy completion of the Polavaram project and to reimburse the outstanding amount of Rs.2,581.88 crores. In this order, the Center responded and released Rs.826.18 crores.

Also Read: Polavaram Hydro Electric Project to be Completed in Jan 2026: Centre