‘Escalation of cost of Polavaram is due to Rehabilitation and Resettlement component’, says Devineni Umamaheswara Rao

Thursday, October 19, 2017

Minister for Water Resources Devineni Umamaheswara Rao said that the increase in the cost of Rehabilitation and Resettlement is the biggest component in the escalation of the cost of the Polavaram project.

Speaking to media here today, he refuted the allegations of YSRCP MP YV Subba Reddy who wanted to take a delegation of MPs to New Delhi to raise questions about the cost of escalation. He said that the prime motto of YSRCP is to foil the attempts to complete the project. The cost of the project escalated from an estimated Rs.16,000 crore to Rs.58,000 crore . The cost of R&R alone worked out to be Rs.38,000 crore, he said. The government wanted to pay to the displaced people in accordance with the 2013 Land Acquisition Act, he said.

Devineni Umamaheswara Rao said that the TDP government had laid the foundation stone for the project in 2003 and the Congress that came to power in 2004 approved the project with an estimated cost of Rs.165 crore. In a matter of five years, the cost had been escalated to Rs.453 crore and then to Rs.592 crore. This year, it was further escalated to Rs.753 core, he said.

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