Hyderabad: The Telangana Government has shot through a letter to Power Finance Corporation to continue the loan for “not approved” Palamuru-Rangeddy raises the irrigation scheme (PRLI) at least under the component of “drinking water scheme”.
The corporation has asked the country why it should continue to expand the loan to the Pri after Gazette notification recently took over the irrigation project in Krishna and Godavari called the project “not approved”.
“The state government explained to the central Corporation that there are two components in this project.
The first priority is to complete the work to supply drinking water to more than 1,200 villages and the second is to provide water to irrigate 12.30 lakh hectares,” said a senior irrigation official.
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The previous corporation has approved a loan of Rs 6,160 Crore for Pri and released around RS 3,000 Crore as the first installment.
After the Gazette Center notification, the corporation has been released by the remaining loan components.
The Andhra Pradesh government has also asked questions with the Ministry of Jal Shakti and the Krishna River Management Council (KRMB) for loans expanded with “unproductive projects” by central government institutions.
The state government has carried out work on the PRRI with estimated RS 35,200 crore costs to supply drinking water to more than 1,200 villages and irrigation supplies to 12.30 lakh acres in Mahbubnagar, Rangeddy, Nageburnool and Nalgonda.
This target is to divert 90 TMC flood water from the Srisailam reservoir in 90 days every year through Pri.
There is no threat of diversion from all the supply of water guaranteed intended for Andhra Pradesh, officials said.
The construction of reservoirs is in progress and experts have not ruled out the possibility of increasing project costs to more than RS 50,000 Crore at that time was completed.
In his letter to the corporation, the state government told me that even public hearing for environmental permits for the Pri was held recently.
While the state government expects to get environmental permits for the earliest project, it urges the corporation to continue the loan “under the component of drinking water” until then.
The state government also faces “loan crisis” for other projects that have been registered as “not approved” by notification of sheets from the center.