Reports are emerging that Central government will release Rs 3,000 crore for the Polavaram irrigation project, this is through a loan that the Centre has taken from Nabard. It is also siad that the Union Finance Ministry also agreed in principal to include this loan in the Fiscal Responsibility and Budget Management limit of the Center.
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The center first proposed to include it in the state’s FRBM limit but the latter objected to that saying that this amount should be included in the Center’s FRBM limit since Polavaram was a National Project. The state is looking at 100% central funding for this project while the center is likely to provide up to 90%.
Polavaram Project is recognized as the National Project in the AP Reorganization Act and that itself makes the project, a national responsibility. But Narendra Modi government instead of trying to address the concerns of Odisha over submerging villages, stopped the funds to the project bowing down to their blackmail. Finally the center had decided to help, owing to criticism from all quarters.
