Date:26/05/2005 URL: http://www.thehindu.com/2005/05/26/stories/2005052610170400.htm

Andhra Pradesh

Huge package for Polavaram project-displaced

Special Correspondent

Lion's share for rehabilitation

HYDERABAD: The Government has issued administrative approval for the Rs. 2,051-crore rehabilitation and resettlement package for families to be displaced by the Polavaram project, now named Indira Sagar.

This is the first time in the State's long irrigation history that such a huge amount has been earmarked for rehabilitation and resettlement.

The order for the approval, issued on Tuesday, was made available to reporters on Wednesday by the Major Irrigation Minister, P. Lakshmaiah.

The project will submerge 276 villages and 94,357 acres of land. The Chief Engineer of the project, which will irrigate 23.2 lakh acres in Srikakulam, Vizianagaram, Visakhapatnam, Khammam, Krishna and East and West Godavari districts and generate 960 MW of power, originally submitted proposals for Rs. 2,187 crores but the Government adjusted this to Rs. 2,051.02 crores.

With this, the project's amount for which administrative approvals had been issued so far reached Rs. 5,844 crores. Three such approvals were issued last year in quick succession shortly before the Chief Minister, Y.S. Rajasekhara Reddy, performed `bhoomi puja', clearing Rs. 1,120 crores for construction of the dam and connectivities, Rs. 1,320 crores for Right Main Canal and Rs. 1,353 crores for Left Main Canal.

Out of the Rs. 2,051 crores, Rs. 251 crores would go for land acquisition and compensation payable on different assets lost, and Rs. 1,668 crores on resettlement, which included construction of new colonies.

The total cost of the project, however, may go up to Rs. 20,000 crores on completion with the inclusion of the expenditure to be made on developing the network of distributaries and branches.

Polavaram would store some 300 tmcft of Godavari water but the utilisation was likely to be two times this.

The canal would meet drinking water needs of hundreds of villagers en route and that of industries in Visakhapatnam.

Funds mobilisation

Meanwhile, a State team headed by C.V.S.K. Sarma, and consisting of P. Ramakantha Reddy, Principal Secretary, Finance & Planning, M.G.V.K. Bhanu, Special Secretary in the Chief Minister's Office, and B.V.S. Prakasa Rao, Engineer-in-Chief, Medium Irrigation, left here on an 18-day foreign tour to mobilise funds for irrigation projects.

They would have discussions with World Bank and Exim Bank officials in the US and visit Chile and Argentina where the World Bank is implementing such projects.