Centre Not Ready to release funds to Polavaram

Following the recent studies conducted by central committees into the alleged corruption and misappropriation of funds in the construction of  Polavaram project,  the union government has reportedly decided not to release fund to the project until the government come out clean.  


Prima facie, the committees found that Chief Minister  Chandrababu Naidu altered the project designs and inflated the project cost from Rs 11,000 crore to Rs 40,000 crore without any scientific study. 

Farmer Chief Minister Dr.YS Rajasekara Reddy had conceived the project and taken up to address irrigation and drinkign water crisis in Andhra Pradesh.  YSR also succeeded in getting all clearances from the center.       

 After Chandrababu came to power, project works were moving at snail pace.  The union government also not interested in funding the project in the wake of allegations that contractors and influential persons colluded and misused funds.        

The union government had released more than Rs 3000 crore funds exclusively for Polavaram but there were strong allegations that the funds have been misused and delay was taken place in collusion with contractors. The Centre also found anomalies in the project designs and suggested some changes recently.  

Officials said if the government did not complete the project before the deadline, all the funds given by centre will be converted into loan and the AP government will have to clear them. The Centre already lost faith in AP government as the latter did nor fulfill the benchmark set for the completion of Polavaram. 

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