The Union cabinet has approved the Polavaram project as national one and also appointed an authority which looks at the construction of the project. Under Andhra Pradesh Reorganization Law 90[1], the government has recognized Polavaram as national project and will bare about 90 percent of the expenses for the construction of it.

The UPA government which is facing the heat of Seemandhra public for dividing the state, is trying its best to calm down people's anger and approving Polavaram just few days before the elections in Seemandhra region is one of their strategy.

In addition to this the project being an inter-link between Andhra and Telangana region, the Union government decided to appoint an independent organization 'Polavaram Authority for Special Purpose Vehicle' which looks at the legal issues. Already there are many cases pending on Polavaram project and it should also get permissions from Orissa and Chattisgarh states.

The union government will also open an individual account for funds to this project and it will be named as 'Polavaram Project Authority Fund'. The estimated expenditure for the construction of Polavaram project is Rs 16,010.45 Crores and so far the Andhra Pradesh state government has spend Rs 5,135.87 crores.

(AW: Vamshi)