Effect of GST On Irrigation Projects

Modi's government introduced GST (Goods & Services Tax) effecteed on irrigation projects in Telangana said,irrigation Minister T.Harish Rao egislative council on Saturday.He adde that it ie yet to be ascertained and beacause of this the cost of the projct is risen by five to six per cent.With regard to the increase in project cost from Pranahitha-Chevella to Kaleshwaram schemes, he said the increase in ayacut, reservoir capacity and pumping capacity have resulted in proportionate cost escalation.

Besides, land acquisition cost which was only ?1000 crore in the Pranahitha-Chevella project proposal, has increased to ?7,200 crore owing to implementation of the modified Land Acquisition Act, 2013 in Telangana.Relief and Rehabilitation has added ?1,417 crore more, instead of the earlier ?300 crore. On construction of sub-stations for the lifts, the cost has increased from ?1000 crore to ?3000 crore.

The project has so far received environment clearance, forest clearance, construction and machinery clearance, hydrology clearance, ground water clearance, and inter-state clearance, the minister said.