Just two days after returning to power, Congress government in Andhra Pradesh has started releasing funds to infrastructure companies implementing ticket irrigation projects in the state, valued at over Rs 1.2 trillion.
Construction companies, such as IVRCL, Nagarjuna Construction Company and Lanco Infratech, are carrying out these projects under the Jalayagnam Scheme. The three firms have orders worth Rs 8,000 crore on the irrigation project. Congress promised to continue the scheme if voted to power.
The multi-purpose projects that are at different stages of execution were stalled for a while as the state had delayed payments to the companies carrying out the projects. Money for these schemes came largely from sale of land. But the downturn in the realty market hit the resource-raising ability of the state through this route.
These projects were launched by the government in 2004, and are scheduled to be completed by 2012.
“IVRCL is executing irrigation projects worth Rs 5,000 crore under the Jalayagnam Scheme. We received sanctions for the projects last week. While some projects may take about a year, few others may take four years to get completed. The delay in fund allocation was mainly on account of the model code coming into force before the elections. It has not impacted us as such,” said IVRCL chairman and managing director E Sudhir Reddy. The company has bagged about seven state-sponsored irrigation projects.
Lanco Infratech too is implementing three projects, valued at Rs 30 crore. Nagarjuna Construction Company (NCC) is executing 11 irrigation projects under the scheme, valued at Rs 2,751 crore. “While we hold a 50% stake in these projects, the other 50% is held by Maytas Infra. All our running bills have been paid by the government,” said NCC executive vice-president (finance) Y D Murthy.
Companies feared that these projects would be cancelled if a non-Congress government comes to power.
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