Panel reworking cost of Polavaram project: Govt

A committee has been formed by the Finance Ministry to rework the cost of Polavaram project in Andhra Pradesh, the government told Rajya Sabha Monday and voiced hope it would come out soon with revised estimates. Replying to supplementaries, Jal Shakti Minister Gajendra Singh Shekhawat said the committee has been constituted under the chairmanship of a joint secretary of the Finance Ministry.

"The revised cost estimates is being assessed by the Technical Advisory Committee. "The matter has been referred to Finance Ministry and it has set up a committee in this regard. The Finance Ministry will take a decision in this regard," the minister said.

"One meeting of the committee has already been held on June 26 and it is hoped that a decision on revised cost of the project comes soon and a meeting of the panel is held again soon," he told the house. The minister said the Ministry of Finance has also asked the state government to soon send an audit of Rs 5,000 crore spent prior to 2014, as an audit of Rs 3,000 crore spent has been held so far.

Shekhawat informed the house that compensation package of Rs 6,36,000 has been fixed per affected family and those whose cattle is also affected, they will get another Rs 25,000, as per the package decided. Earlier in his written reply to the question, the minister said a Revised Cost Committee has been constituted by the Ministry on April 02, 2019 to examine the cost escalation of Polavaram Irrigation Project (PIP) as per the instructions issued by Ministry of Finance.

"The Government of Andhra Pradesh submitted Revised Cost Estimates (RCE) for Rs 57,297.42 crore at 2017-18 price level to Central Water Commission (CWC) in January, 2018. "The Advisory Committee on Irrigation, Flood Control & Multipurpose Projects of the Department of Water Resources, River Development & Ganga Rejuvenation, Ministry of Jal Shakti (formerly Ministry of Water Resources, River Development & Ganga Rejuvenation) in its 141st meeting held on 11.02.2019 accepted the Revised Cost Estimate (RCE) of the Polavaram Irrigation Project for Rs 55,548.87 crore at 2017-18 Price level (PL) of which cost of irrigation component is Rs.50,987.96 crore," he said.

"The approved RCE has reduced mainly on account of reconciliation in estimated cost of certain land under submergence, land for which compensation is payable, cost of remaining works as per relevant schedule of rates," the minister said. Shekhawat said to ensure rehabilitation and resettlement of those affected by the project, committees have been formed by state governments and are headed by collectors to look into grievances.

"There is no complaint pending with the government of India. As far as complaints pertaining to resettlement of tribals are concerned, we have already set up a committee under the Secretary of Ministry of Tribal Affairs to redress their grievances," he said. Though the project is of the central government, he said the R and R issues are being taken care of by the state government.

Shekhawat said that resettlement and rehabilitation issues are being looked into by the state government. The grievances mechanism has been set up in this regard, he said..

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