Under the Accelerated Irrigation Benefit Programme(AIBP) the Ministry of Jal Shakti has asked the National Water Development Agency(NWDA) to release the grant of Rs 1,850 crore for the Polavaram project which was granted by the Union Ministry of Finance.
"The State/PPA would be required to submit audited statements of expenditure incurred on the components of the projects within 18 months of the completion of the financial year in which the fund is released. The release of fund of the following years will not be considered if the audited statement of expenditure is not furnished within the stipulated time. If the State/PPA fails to comply with the agreed/revised approved date of completion, the grant component released will be treated as a loan and recovered as per usual terms of recovery of Central loan," order of the Ministry read.
However, the Order of the Jal Shakti Ministry's order says, "The release may be regulated and the whole amount may not be released in one installment unless deemed absolutely necessary keeping in view the state of preparedness of the implementing agency in utilising funds."
"The process has become too long drawn. Now, we have to wait once again for NABARD to transfer the money to us. The clause of the grant becoming a loan if conditions are not complied to is unusual. This is the way a national project is being funded," a close circle from the state government said.