Hyderabad sources have stated that the Union water resources ministry has informed the state government that it would bear the total cost of the Polavaram project by floating a special purpose vehicle through National Bank for Agriculture and Rural Development (Nabard).
Sources have added that as per the plan, the Nabard will tie-up with two or three foreign investment banks to provide 100% cost of the project that would provide irrigation to 7.2 lakh acres in West, East Godavari and Vishakhapatnam districts and with this, doubts over the quantum and timeline of the financial assistance by the Centre have been cleared.
Presently Nabard is engaged in negotiations with foreign investment banks and a final agreement was expected to happen by the end of September and aAfter a formal tie-up, the Nabard will start releasing funds to the AP government.
The AP chief minister N Chandrababu Naidu has said that the revised cost of rehabilitation would be around Rs 14,000 crore as the state government decided to build houses and also provide education and health facilities for those who lost their land for the project and the Centre has agreed to bear the revised cost of relief and rehabilitation.
