Polavaram project cost goes through the roof
MN Samdani | TNN | Oct 12, 2015, 12.35 PM IST
VIJAYAWADA: The fate of the Polavaram project, touted as the lifeline of Andhra Pradesh, hangs in balance if its revised cost estimate is any indication. The state cabinet, in its meeting on Saturday, had raised the project cost to a whopping Rs 36,000 crore. The project, across the river Godavari at Polavaram village, was estimated to cost only Rs 16,000 crore when it was last revised in 2011. The current upward revision by Rs 20,000 crore will be a huge burden for the cash-strapped state to bear.
When the project was first mooted in 2005, the state government had put the cost at Rs 10,271 crore. The crops in East and West Godavari as well as Krishna districts will not get assured irrigation if the project does not come through. Although chief minister Chandrababu Naidu has been claiming that the government will complete the project by 2018, experts argue that it will take another decade to execute it in view of the steep escalation in cost.
The Central government has accorded 'national' status to the Polavaram multi-utility project in fulfillment of the promise made in the AP State Reorganization Act. It has also assured financial support, but sanctioned only Rs 300 crore in the last two budgets. It is not clear whether the Centre will agree to foot the additional burden due to the upward cost revision of the project.
AP water resources minister Devineni Umamaheswara Rao told TOI: "The estimates have been revised based on the proposal sent by a committee comprising senior officials. The government has decided to expedite the project work."
Irrigation experts point out that Polavaram will become a reality only if the Centre sanctions at least Rs 6,000 crore a year for the next five years. "Sanction of a meager amount will hamper the progress of the project. If the Centre continues to dole out just Rs 300 crore a year, Polavaram will continue to elude the farmers in the state," said former MP Vadde Sobhanadreswara Rao.
As it stands now, even seven per cent of the dam's construction is yet to get completed even three years after the award of the contract. Transtroy, the contractor firm, is believed to have stalled the work demanding upward revision of the project cost in view of inflation.
Since the tender was granted on EPC (engineering, procurement and construction) basis, the government is not obligated to revise the cost as it is the responsibility of the contractor to foot the additional financial burden. However, the government gave a green signal to the revised estimation allegedly due to the lobbying of some influential players.
The state water resources minister, however, clarified that of the total revised cost, the share of the dam is less than 10 per cent. The project cost went up due to the burden of relief and rehabilitation work, he added.
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Massive escalation when compared to the previous one which is only 4 years old. There must be proper review of the cost escalation by independent experts, one can spell corruption in it. Time to make... Read More
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State BJP leaders questioned the cost revision. "The Centre has recognised Polavaram as a national project. It has also appointed an independent agency, Polavaram Project Authority, to monitor the work. How can the state government revise the cost without the PPA's nod?" asked senior BJP leader Somu Veer Raju.
Krishna Delta Jalasadhana Samithi leader Kolanukonda Sivaji demanded a 'white paper' on the money spent on the project so far. "The TDP government seems to have no intention to complete the project soon. The cost has been revised only to delay it, and not to complete it on time," alleged MVS Nagi Reddy of YSRCP.
Responding to the charges, Devineni Umamaheswara Rao said that rival political parties are making "baseless" comments as they are not interested in the early completion of Polavaram.
