Centre releases Rs 1269 cr for Andhra projects

Amaravati, Feb 10: The Centre has released a sum of
Rs 1,269 crore to Andhra Pradesh under different heads in the last few days amid a strain in ties between the NDA and its ally TDP over allocation given to the state in the Union Budget.

The gross grant included Rs 417.44 crore for the Polavaram multipurpose project, one of the issues of contention between the allies TDP and BJP.

"The release (of Rs 417.44 crore) is towards the amount already utilized by the state against the irrigation component (of Polavaram) after April 1, 2014," an order issued by the Union water resources ministry’s senior joint commissioner, RPS Verma, said.

The Centre, through the Polavaram Project Authority, had so far released Rs 4,329 crore for the project while the state government said it spent over Rs 7,200 crore after it was declared a national project.

Andhra Pradesh finance minister Yanamala Ramakrishnudu submitted a memorandum to Union Finance Minister Arun Jaitley last month stating that a sum of Rs 3,217.63 crore, spent on Polavaram, was yet to be reimbursed to the state. Of this, the Centre has now released Rs 417.44 crore, an official of the water resources department here said.