Centre should reimburse Rs 3,722 Cr spent on Pollavaram: CM

Andhra Pradesh Chief Minister N Chandrababu Naidu Monday wrote a letter to Union Water Resources Minister Nitin Gadkari demanding that the Centre immediately reimburse Rs 3,722 crore spent by the state government on the Polavaram project.

He also wanted the Centre to expedite approval of the revised cost estimates of Polavaram, submitted to the Central Water Commission in August 2017.

Naidu wrote the letter even as the Union Minister spoke at a BJP workers' conference here asserting that the Centre would spend "100 per cent" money on Polavaram.

The Chief Minister said Rs 10,459 crore was spent after Polavaram was declared a national project in June 2014.

Of this, the Centre reimbursed Rs 6,727 crore, with the last tranche coming in June 2018.

"The Centre is yet to reimburse Rs 3,722 crore spent by the state. The state government is providing required funds from its available meagre resources for the project so that the progress of ongoing works is not hampered.

This is affecting the implementation of other flagship programmes of the state government severely," Naidu said in the letter.

He also said reimbursement of expenditure was linked to the approval of revised cost estimates.

"Any further delay in approval of revised cost estimates will delay the reimbursement, which in turn will affect the project, including land acquisition, rehabilitation and resettlement," he added.

Naidu recalled the Union Minister's promise, made during the latter's visit to the project site, on timely release of funds so as to complete it by February 2019.

"I wish to remind you that unless funds due to us are reimbursed immediately, the country is likely to lose a golden opportunity to complete a national project that is benefiting five states directly," he said.

Naidu sought Gadkari's "immediate action" to expedite approval of revised cost estimates and reimbursement of Rs 3,722 crore.