The government has designed the SPVs in such a way that they could pool required money from financial institutions and government agencies such as National Bank for Agriculture and Rural Development (Nabard) from different schemes. The state government estimated that it would require at least Rs 9,000 crore to complete the new drinking water schemes.
The government directed the rural water supply and water resources department to coordinate with other departments to expedite the water grid projects. The state government has granted administrative approvals for different water grid projects helping them to approach the financial institutions.
With abundant funds available with the Union Jal Shakti ministry under drinking water schemes, the state government has tied up a majority of the water grid schemes with central funds to lessen the burden.
Sources said that the Centre had already agreed to extend financial assistance to the tune of Rs 3,200 crore to the state government to take up the drinking water schemes under Jal Jeevan Mission.
The state government has also succeeded in roping in Nabard for grant of funds for water grid projects. While the state government is likely to spend close to Rs 1,500 to Rs 2,000 crore as its share, tie-ups with different agencies to grant loans to the tune of Rs 3,500 crore have also been finalised.
The state government is taking up a water grid project in Uddanam region of Srikakulam district with a massive Rs 700 crore. This project is likely to help the region overcome the presence of chronic kidney disease (CKD) as several hundreds of locals were found struggling with kidney ailments.
Although several studies carried out by the national and international agencies have failed to pinpoint the reason behind a large section of the population getting affected with kidney diseases, contaminated ground water for drinking water needs is suspected to be one of the reasons. Taking serious note of the issue, the government constituted a separate SPV to take up the water grid project in Uddanam.
Similarly, the government is taking up a water grid project in Pulivendula, the home town of chief minister Y S Jagan Mohan Reddy at a cost of Rs 480 crore. Nabard has agreed to grant nearly Rs 2,400 crore for a water grid scheme in East Godavari and Rs 1,850 crore for West Godavari.