The proposed Polavaram Project Authority will be an autonomous body under the Union Water Resources Ministry.
The dedicated 'special purpose vehicle' will be tasked to to obtain all requisite clearances including environmental and forest and work to create investment and rehabilitation norms, according to the proposal.
Sources said the proposal was cleared by the Cabinet at its meeting held here this evening.
"The Authority shall also ensure expeditious execution, regulation and development of the project while simultaneously ensuring implementation of adequate environmental safeguard measures and proper rehabilitation of those dispaced," sources said quoting the proposal.
Telangana is expected to come into being as the 29th state of India on June 2.
The Polavaram project has been declared as a national project recently.
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