
The contractors of the project already have bills worth 1310 Crore pending with the government. They are refusing to take up new works until the bills are cleared. However Union budget did not allot a single paisa for this project which is deemed as a national project in the Andhra Pradesh Reorganization Act.
The allotted 100 Crore is for the maintenance costs of the Polavaram authority. The overall cost of Polavaram project shot up from Rs 5,600 cr in 2006 to Rs 16,010 cr by 2013. The cost is expected to shoot up further as the land acquisition cost has more than tripled in the region as farmers are seeking additional compensation under the relief and rehabilitation package.
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