Despite all the bonhomie with AP CM YS Jagan Mohan Reddy, the Centre appears to be tight-fisted when it comes to revising the estimates of Polavaram project. It seems not interested in yielding even an inch to the demands of the state government.
While the state government has been asking the Centre to accept the revised estimates of Rs 55656.87 crore for the Polavaram, the Centre appears determined not to allow any increase from the agreed Rs 20398.61 crore. It has not given the much-needed investment clearance to the Jagan government. The latest is that the Centre has rejected bills worth Rs 1086.38 crore. It said that of these bills, bills worth Rs 805.68 crore are beyond the accepted project cost. And it rejected bills worth another Rs 289.69 crore as they are not part of the DPR.
CM YS Jagan Mohan Reddy sent a letter to the Prime Minister asking him to accept the cost estimate of Rs 55656.87 crore. He has also discussed the issue with the Union Home Minister, Union Finance Minister and others, but to no avail. The Centre has not given a clearance to this estimate.
The biggest problem for the state is that it needs another Rs 24000 crore to acquire land up to 45.72 metre contour. With the Centre not releasing the funds, the State Government has limited itself to 41.15 metres contour only. This issue is now affecting the Polavaram works. With the Centre becoming tight-fisted, the State Government is now not in a position to release funds for these works.