Andhra Pradesh Chief Minister N Chandrababu Naidu announced that the detailed project report (DPR) for the Rs 82,000 crore Polavaram-Banakacherla Irrigation Project is being prepared for submission to the Centre. Chairing a Cabinet meeting at the Secretariat in Velagapudi, the CM underscored the importance of the construction & project in addressing water scarcity in drought-prone Rayalaseema.
According to Naidu, the scheme aims to provide water for drinking, irrigation, and industrial purposes, transforming local agriculture and boosting growth. The State government has been working closely with Central authorities to finalise a financial model for execution.
Information and Public Relations Minister Kolusu Parthasarathy outlined the funding structure: 50 percent would come through externally aided projects (EAP) loans, 20 percent from the Central government, 10 percent from the State government, and the remaining 20 percent under a hybrid annuity model (HAM). This diversified financing approach is expected to expedite the project’s construction and ensure resource allocation.
Stakeholders welcomed the decision, citing potential job creation and enhanced irrigation infrastructure. Once approved, the DPR will pave the way for mobilisation of resources and commencement of construction activities in the region. The government remains optimistic that implementation will mitigate water stress and bolster regional development.
