AMARAVATI: The Andhra Pradesh Government on Friday accorded permission for creating a Special Purpose Vehicle (SPV) for the construction and development of irrigation projects in the Rayalaseema region. The state government has issued an order to this effect. Under this decision, the SPV will act as a 100-percent state-owned entity as part of the Water Resource (WR) Department under the Companies Act, 2013, in the name of 'Andhra Pradesh Rayalaseema Drought Mitigation Projects Development Corporation Limited' (APRSDMPCL).
The decision is being seen as a monumental one in making the right steps towards mitigating age-old irrigation water scarcity in the Rayalaseema region. The order was issued in this regard to Water Resources Engineer-In-Chief by Aditya Nath Das, Special Chief Secretary to the government.
The initial paid-up share capital will be kept at Rs 5 crores and met from the budget of the Water Resources Department, The paid-up capital can be raised to appropriate levels at periodic intervals, basing upon the requirement," the order read.
It is proposed to provide minimum water security to Rayalaseema.
A total of 27 irrigation projects have been identified and Rs 40,000 crores will be spent on the development of projects in the Rayalaseema region. The SPV will be responsible for the funding and project management besides overseeing the 27 projects.