Centre puts Polavaram in suspense

Compounding the denial of Special Category Status for AP, the Centre has put the funds for Polavaram also in suspense, saying there will be no more grants for irrigation projects but only loans, which will have to be returned with interest. Alternatively, the State concerned and the Centre will have to share an irrigation project on a 50:50 basis. Not only AP, the Centre is also poised to deny funds for Telangana irrigation projects also. Usually the Centre takes loans from NABARD and other agencies to give grants to States for irrigation projects. The Centre suddenly posed a question to itself. Why take loans to give grants? This is the current thinking of the Narendra Modi government to put all irrigation projects with Central grants in limbo. The stipulation is also likely to be extended to projects that have been accorded National Status such as Polavaram. The situation will turn the worse for the Telugu States, which have lined up several massive irrigation projects to solve the water problem in their respective areas. States will certainly take grants, but they tend to hesitate if it's in the form of a loan, which will have to be repaid along with interest. It remains to be seen how far the Telugu States can fight back on the Narendra Modi government thinking on irrigation projects.