The national project status for the Polavaram multipurpose irrigation project on the Godavari, the most important part of Y S Rajasekhara Reddy’s ambitious Jalayagnam irrigational programme, is likely to come up before the Cabinet for clearance.

With the project caught up in inter-state tussle after its launch in 2004, YSR had been trying to revive it by securing national project status which would have enabled the Centre to fund up to 90 per cent of the project. While the Centre was till now undecided on according it national project status due to objections raised by neighbouring Orissa, sources in the Union Water Resources Ministry said they were thinking of placing it before the Cabinet soon.

YSR had performed bhoomi pooja of the Polavaram project, estimated to irrigate 7.21 lakh acres in the upward areas of West Godavari, Krishna, East Godavari and Vishakhampatnam districts, generate 960 MW of power and also provide industrial and drinking water to these districts, in November 2004, soon after he came to power dislodging the TDP.

But YSR wanted the project to be accorded national project status, so that the Centre could provide funding of up to Rs 6,000 crore. Orissa, however, has been protesting against any such move by the Central government, with Chief Minister Naveen Patnaik writing to Prime Minister Manmohan Singh objecting to the national project status. Patnaik said the project would inundate many of its villages without any benefit to Orissa.

However, sources in the Water Resources Ministry said that while pushing for national project status YSR had offered to construct embankments on either side of the reservoirs in Orissa side from Andhra Pradesh’s funds to prevent villages in the neighbouring state from being submerged.