"In terms of Section 90 of the Andhra Pradesh Reorganisation Act, 2014, the Union Government has decided to support AP for setting up of an SPV for the Polavaram Irrigation Project and release Rs 250 crore in this financial year," a Finance Ministry statement today said.
Andhra Pradesh Chief Minister N Chandrababu Naidu had earlier asked the Union government to ensure that the project is completed within four years.
The project has been declared a national project which the Centre will execute, as per the AP Reorganisation Act.