The Centre’s financial assistance for the Polavaram major irrigation project on the Godavari river in Andhra Pradesh is limited to approved irrigation components of Phase-I, restricting water impounding to 41.15 metres, a statement tabled by Union minister of state for Jal Shakti Raj Bhushan Chowdary in the Lok Sabha on Thursday said.
The statement, made in a written reply to a question by YSR Congress Party MP P V Midhun Reddy, said the Centre had approved ₹30,436.95 crore for Phase-I of the Polavaram Irrigation Project, covering water storage up to an elevation of +41.15 metres at 2023 price levels.
“Of this, the balance Central grant has been capped at ₹12,157.53 crore. The Centre had already released ₹5,512.40 crore during the 2024-25 financial year and a further ₹2,810.22 crore in 2025-26 towards the execution of the Polavaram, which has been declared as a national project,” Chowdary said.
He said the project was progressing as scheduled and remained on track for completion of Phase-I by June 2027.
“The work is right on track. The remaining critical milestones include completion of the main dam works in Gap-I and Gap-II, as well as land acquisition and rehabilitation and resettlement (R&R) activities,” he said.
Clarifying the scope of Central funding, Chowdary said the approved grant was confined to Phase-I works required for water storage up to +41.15 metres. However, it also covered all civil works up to the Full Reservoir Level (FRL) of +45.72 metres, along with land acquisition and R&R works up to +41.15 metres and the Left Main Canal and Right Main Canal.
{{/usCountry}}Clarifying the scope of Central funding, Chowdary said the approved grant was confined to Phase-I works required for water storage up to +41.15 metres. However, it also covered all civil works up to the Full Reservoir Level (FRL) of +45.72 metres, along with land acquisition and R&R works up to +41.15 metres and the Left Main Canal and Right Main Canal.
{{/usCountry}}The minister also made it clear that the cost of the Polavaram Power House would have to be borne entirely by the Andhra Pradesh government as it falls outside the scope of Central assistance.
On compliance with funding conditions, the statement said the Andhra Pradesh government had been submitting the required technical documents and utilisation certificates on time.
The Polavaram Project Authority (PPA), under the Department of Water Resources, River Development and Ganga Rejuvenation, scrutinises these documents before recommending the release of subsequent Central grant instalments.