The Polavaram Project Authority (PPA), a special purpose vehicle constituted for the purpose of disbursal of funds rejected Rs 750.118 crore to the state government. This is a big blow to the Jagan led YSRCP government as they pinned all their hopes on these extra funds.
The AP government has spent Rs 12,505 crores on the prestigious Polavaram project from April 2014 to July 2020 on its own and Polavaram Project Authority has declined to reimburse Rs 750.118 crore of the amount to the state government has spent so far and even though the MP Vijay Sai Reddy raised the issue in the house, it went in vain.
Minister of State for Water Resources Rattan Lal Kataria told the Upper House about this inability of them to reimburse the funds and Jagan wants to complete the project by December 2021 in these crucial situations.
In a letter that was written to the Water resources minister by Jagan, he had stated that the government requires around Rs 15,000 crore for the completion of the project by next year and even asked the center to direct the National Bank for Agriculture and Rural Development(NABARD) to acquire the amount as loan.
However, with the centre not reimbursing the amount that the AP government spent, they cannot disperse any amount for the AP and mostly, AP CM needs to find a way to get out of this economic recession on his own.
