Hyderabad, June 6: The Union Finance Ministry has agreed to release ₹12,911 crore for completion of the first phase of Polavaram Project in Andhra Pradesh. 

The amount to be released also includes the ₹2,000 crore additional expenditure incurred to due to the faulty construction of the diaphragm wall of the project. The Centre had also given exemption from compound payment of bills as it is causing delay in the project, according to a release. 

Chief Minister YS Jagan Mohan Reddy directed the Irrigation Department officials to complete the repairs of damaged diaphragm wall of the project at the earliest to expedite the construction of the main project. 

Also read: Polavaram project will continue only after damage assessment, says AP Minister

At a review meeting held at the project site on Tuesday, the Chief Minister, after inspecting the progress of works, directed the officials to develop the project site as a favoured tourist destination by constructing a hotel and providing other amenities for visitors.

According to officials, 2,658 displaced families have been shifted to the newly constructed colonies as part of the relief and rehabilitation.