Nabard-Foreign Banks tie-up for Polavaram

Union Water Resources Ministry is keen on bearing the total cost of Polavaram Project by Nabard (National Bank for Agriculture and Rural Development) tie-up with 2-3 Foreign Investment Banks. Agreements in this regard were expected to be signed by September end. Soon after the tie-up, Flow of Funds from Nabard to AP Government would be initiated.

As per 2011 estimates, The cost of Polavaram Project was Rs 16,010.45 crore. Until 2014 March, Rs 5,135.87 crore which include Rs 562.47 crore Central Assistance was spent on the project.

The revised cost of Polavaram Project has been approved by Centre. Rehabilitation Cost alone would be Rs 14,000 crore as AP Government wishes to built houses, offer plots, free education & health facilities to those people in 7 mandals who will lose their lands. Total project cost could be close to Rs 30,000 crore.

Polavaram Project could provide irrigation water to 7.2 lakh acres in East, West and Uttar Andhra Districts.

Nabard-Foreign Banks tie-up for Polavaram