According to media reports, central water resources ministry after evaluating the findings of the report presented by the expert committee directed NABARD to release the second installment in order to clear the pending financial issues of Polavaram project.

Polavaram is the most awaited multi-purpose national project irrigation project.It will be financed by the central government under the Andhra Pradesh Bifurcation act. Polavaram considered as the lifeline of Andhra Pradesh where stakes are very high for the ruling TDP government. Even after being financed by central government, the Chief Minister is personally monitoring all the developments of Polavaram.

Chandra Babu was unhappy over the sluggish progress of Polavaram and even locked horns with the central government over several issues like finalization of the contractor and financial aid for the mega project. The Andhra Pradesh Chief Minister was not happy the appointment of the Transstroy contractor and reportedly protested against the selection. Later state government called new contract agency Navayuga to fine-tune the ongoing construction.