POLAVARAM: The Central government has agreed to sanction Rs 12,911 crore to Andhra Pradesh for completing the first phase of Polavaram Project, an official statement from the state government on Tuesday said.

The union finance ministry has issued a memorandum approving this quantum of funds, officials said.

“This is a result of the unrelenting efforts, negotiations and consultations by the Chief Minister with the Centre,” the press note said.

According to officials, the sanctioned amount of Rs 12,911 crore also includes Rs 2,000 crore to cover the extra expenditure caused by the allegedly faulty construction of the diaphragm wall built during the TDP government.

Officials said that the finance ministry has sent this memorandum to the union water resources ministry, including offering exemption from compound payment of bills as it is causing project delay.

On Tuesday, Chief Minister YS Jagan Mohan Reddy visited the project site and instructed officials to develop the project site as a favoured tourist destination by constructing a hotel and providing other amenities for visitors, including building a bridge at Polavaram.