Polavaram: Centre Gives Shocker To Jagan

The YCP government received a shock from the Centre in connection with the Polavaram project. The irrigation project, touted to the lifeline of Andhra Pradesh, was accorded national project status by the Centre.

Chief Minister Y.S. Jagan Mohan Reddy had always criticised former CM N. Chandrababu Naidu of rampant corruption in the irrigation project and projecting inflated figures only to receive kickbacks from the contractors. These allegations proved to be a curse to Jagan now.

The Centre pegged the expenditure of the project at Rs 20,398.61 crore and made it clear to the Polavaram Project Authority (PPA) that it would not grant funds beyond that limits.

Probably, the Centre too believed that the estimated expenditure figures were inflated and so went by that calculated in 2013-14.

In 2013, the estimation of the project reached Rs 55,548.87 crore due to the heavy expenditure in the land acquisition and rehabilitation procedure.

TDP demand

The TDP government, headed by former Chief Minister N. Chandrababu Naidu, fiercely fought with the Centre demanding that the entire cost should be borne by it. In February 2019, the technical advisory committee, which functions under the supervision of the Union Jal Shakti ministry, too agreed to the demand. However, after the 2019 elections, the entire scene had changed.

On examining the Polavaram file sent by the Jal Shakti department, the Union finance ministry agreed to pay only Rs 47,725.24 crore. In July 2019, the Centre took a decision to restrict the expenditure on land acquisition. Now, it has cut down the expenditure limit further and probably gone for the ‘reverse’ mantra.

The BJP-led NDA made it clear that it would stand by the estimated expenditure finalised by the UPA government, during the bifurcation of the state. It is learnt that the Centre had written a letter to the PPA regarding the same.

Funding sources

Funds As per the estimates in 2013-14, the expenditure on the irrigation project was pegged at 20,398.61 crore. Of this amount, the state government had already spent Rs 4,730.71 crore, including the funds given by the Centre under AIBP funds. This means there is a balance of Rs 15,667.90 crore that the Centre needs to pay to the state government.

Since 2014 till date, the Centre paid Rs 8,614.16 crore through Nabard. Now, if the whole amount is deducted from the total, the state government should get Rs 7,053.74 crore.

As of now, the state government spent Rs 2,234.66 crore of its funds on the project and it would be reimbursed by the Centre. If this amount is reimbursed, then the total amount the Centre is due to pay to the state government towards Polavaram is Rs 4,819.474 crore. The Centre made it clear to the PPA to ensure that the AP government agreed to take only this amount.

Accusations turn real

When Jagan was in the Opposition benches, he alleged that the Polavaram project has turned into an ATM for former CM N. Chandrababu Naidu. “The heavy corruption by the TDP leaders had led to inflation of the expenditure on the project to Rs 55,548.87 crore. The TDP government had increased the expenditure of the project only to receive kickbacks. The project is mired in corruption,” he alleged.

After coming to power in 2019, Jagan changed the contract agency executing the Polavaram works in the name of ‘reverse tendering’.

Now, the Centre seems to have reversed even the time and finalised the estimates projected in 2013-14 for the irrigaton project. In fact, the new land acquisition act introduced by the UPA government had increased the relief and rehabilitation expenditure on the project evacuees.

Some areas that would be affected due to Polavaram in Telangana were also added to the list of evacuees who should be paid compensation. Not aware of these facts, Jagan, who was in the Opposition then, cried hoarse that the estimates were being increased and that the TDP resorted to corruption in executing the project.

Nothing serious

After assuming power, Jagan did not give much attention to the Centre reducing the land acquisition and compensation estimates.

Last month, Jagan, accompanied by ministers Anil Kumar Yadav , Buggana Rajendranath and MP Vijayasai Reddy, met Union finance minister Nirmala Sitharaman and Jal Shakti minister Gajendra Singh. Even at that time, the CM reportedly did not appeal to the Centre not to reduce the estimates of the project. It is learnt that Jagan appealed only for the reimbursement of the Rs 2,234.288 crore spent by the state government towards the project.

Now, the Centre has put forward the estimates presented by Dr Manmohan Singh’s Cabinet in 2014 regarding the national irrigation project.

It has to be seen how Jagan’s government would react to this development because completing the project with the estimates prepared in 2013-14 is highly impossible. The public will have to wait and watch if Jagan’s government would fight with Centre and get the funds or if the state would bear the whole expenditure.