Union Finance Department directs NABARD to release 1,850 crores to Polavaram project

Union Finance Minister Nirmala Sitharaman on Wednesday issued an order allowing central govt to reimburse Rs 1,850 crore for the Polavaram project. The Union Finance Minister secretary Gautam Phalit has submitted proposals to NABARD (National Agricultural and Rural Development Bank) to release the funds to the state government through the Polavaram Project Authority (PPA). NABARD was instructed to raise funds from the open market by issuing bonds and release them to the Polavaram project.

With this, NABARD will raise Rs 1,850 crore by issuing bonds under SEBI (Securities and Exchange Board of India) e-Action Platform.

The project will be funded by the PPA within five days. This is the first time the centre has been funded for Polavaram since July 24, 2018. It is a known fact that CM YS Jagan has saved Rs.841 crores with reverse tendering in the Polavaram project.