In a blow to the Jagan-led government, the Polavaram Project Authority (PPA), a special purpose vehicle constituted for the purpose, has rejected disbursal of Rs 750.118 crore to the state government.

The Andhra Pradesh government had spent so far spent Rs 12,505 crore between April 2014 to July 2020 on the Polavaram project. Of this, Polavaram Project Authority has declined to reimburse Rs 750.118 crore to the state government, Minister of State for Water Resources Rattan Lal Kataria told the Upper House. He was responding to a question raised by YSRCP MP Vijayasai Reddy.

Vijayasai Reddy told the House that so far the central government has reimbursed Rs 8,577 crore. The YSRCP Rajya Sabha MP informed the House that the Polavaram Project Authority is yet to reimburse Rs 478.65 crore.

Rattan Lal Kataria stated that the Water Resources ministry had on September 15 received a letter (dated August 25) from Chief Minister Y S Jagan Mohan Reddy seeking early release of the central funds as the state government was serious on completing the project by December 2021.

In the letter, Jagan had stated that the government requires around Rs 15,000 crore for the completion of the project by next year and pressed upon the centre to direct the National Bank for Agriculture and Rural Development(NABARD) to acquire the amount as loan.