The Hindu Business Line : AP to seek World Bank loan for Nagarjunasagar project

The Central Government has cleared a proposal of the Andhra Pradesh Government to secure Rs 4,444 crore from the World Bank to take up Nagarjunasagar modernisation project.

Initially, the State Government was seeking up to 50 per cent of the project cost from the World Bank. However, based on the State Government’s request, the Economic Affairs and Expenditure Departments of the Union Government have cleared the entire project cost of Rs 4,444 crore for World Bank funding.

The State Major Irrigation Minister, Mr Ponnala Lakshmaiah, said that the proposal has been made by the State Government in view of severe financial crunch it is currently faced with. Otherwise, the initial plan was to secure Rs 2,222 crore from the World Bank and the rest was from the State funding.

With the Centre approving State’s request to raise the entire amount, the documents relating to the project and funding requirements would be sent to the World Bank with a request to enhance the funding amount.

According to a perspective plan, the Nagarjunasagar modernisation project covers upgradation and rehabilitation of those affected in both right and left bank canal systems. These two canals serve about 25 lakh acres in five districts of the State. The funding includes repairs and rectification.

In fact, the State Government commenced works on the modernisation project last year infusing State funds. The State has thus far pumped Rs 189 crore into the project.

More Stories on : Water | Modernisation | Andhra Pradesh

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