Poalavaram Project Marginal Cost Cutting
The State and Central Governments are in talks over the revised estimates of the Polavaram Project. Earlier the State Government estimated the Project cost at 58319.06 Crore including 33225 Crore for Land Acquisition and Rehabilitation. Due to the reduction of Steel Prices, the estimates are reduced slightly by 378.2 Crore and according to the new estimates, the Project will cost 57940.86 Crore. Since the State Government will bear the cost of the Hydel Project, the expense is also reduced. The Hydel Project will cost 4205.66 Crore to the state exchequer. The irrigation Component will cost 53735.2 Crore and this amount will have to be borne by the Central Government, according to the Andhra Pradesh Reorganization Act.