Externally Aided Projects and Polavaram of Andhra Pradesh to get financial assistance
 Source : News Bharati English  Date : 16-Mar-2017

Hyderabad, March 16: On Wednesday the cabinet chaired by the Prime Minister Narendra Modi approved the financial assistance for Andhra Pradesh by providing funds to externally aided projects EAPs and also the irrigation component of Polavaram project.The special assistance approved by the Cabinet will be provided to the state towards repayment of loan and interest for EAPs signed and disbursed during 2015-16 to 2019-20, an official release said.

Embeded Object

The Central Government will provide special assistance measure to the government of Andhra Pradesh, which would make up for the additional central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State. The special assistance will be provided by way of repayment of loan and interest for the Externally Aided Projects (EAPs) signed and disbursed during 2015-2016 to 2019-20 by the State.

The Centre will also fund 100% for the remaining cost of the irrigation component only of the Polavaram project for the period starting from 1.4.2014, to the extent of the cost of the irrigation component on that date. Andhra Pradesh Government will execute the project on behalf of Government of India. However, the overall coordination, quality control, design issues, monitoring, clearances related issues etc. are to be dealt by the Polavaram Project Authority of Ministry of Water Resources, River Development & Ganga Rejuvenation. The Polavaram Project Authority will also assess out the cost of the irrigation component as on 01.04.2014 in consultation with the Department of Expenditure, Ministry of Finance.

This support for capital expenditure by way of repayment of EAP loans would help and assist the newly formed state of Andhra Pradesh to put the finances on a firmer footing and promote economic growth. Further, the central funding of the irrigation component of the Polavaram Irrigation Project and its execution by the State Government shall expedite completion of the project and the increase irrigation prospects in the State benefitting the people at large.