The Hindu : Andhra Pradesh / Hyderabad News : Polavaram cost enhanced by Rs. 7,000 crore

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Monday, Aug 30, 2010
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Polavaram cost enhanced by Rs. 7,000 crore

M. Malleswara Rao

‘Hike inevitable due to rise in prices of building material'

The project will irrigate 7.2 lakh acres in Coastal Andhra and 1.33 lakh acres in Khammam
If national status is accorded to the project, the Centre will bear 90 per cent of its cost

HYDERABAD: The State government has enhanced by a whopping Rs. 7,000 crore the total cost of Polavaram project for which UPA Chairperson Sonia Gandhi has promised national status. As a result, the cost of the project has been revised to Rs. 17,500 crore from Rs. 10,151 crore earlier. The multi-purpose project is intended to irrigate 7.2 lakh acres in Coastal Andhra and 1.33 lakh acres (through lifts) in Khammam district besides generate 960 MW of power.

Hike inevitable

A senior irrigation official said the fresh hike had become inevitable in view of the rise in prices of the construction material. The previous cost was fixed in 2006 based on the then Standard Scheduled Rates (SSR). “If the government quotes the same cost to invite tenders afresh, no agency will come forward,” he added.

Fresh tenders

Fresh tenders to implement the head-works, comprising three main components-earthen-cum- rock-fill dam, spillway and spill channel, and power component, have not yet been called. The delay is attributed to the State government's alleged indecision in the matter following political controversies over the project itself.

Besides, irrigation expert T. Hanumantha Rao raked up a fresh controversy by suggesting construction of barrages at several points across the Godavari in place of Polavaram. His reports have, however, been rejected by the Government.

The YSR Government, on August 28 last, had pre-closed the earlier tenders awarded to two consortia of firms to implement the head-works (barring power component), valued at Rs. 1,500 crore, on the ground that they delayed the works due to lack of coordination among themselves. The agencies had completed works worth Rs. 150 crore by then.

Power component

The government has now decided to include the power component in the head-works and tender all the components to a single agency to get quicker results. A sum of Rs. 3,000 crore has already been spent so far to excavate the canals, acquire land and extend relief to the displaced. If the national status is given to the project, the Centre will bear 90 per cent of its cost. Covering the project under Accelerated Irrigation Benefit Programme, it is now meeting only 25 per cent of the cost.

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