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The Union Cabinet of India on May 01 2014 cleared the proposal for constituting the Polavaram Project Authority (PPA) for the execution of the Polavaram irrigation project. The constitution of the Centrally-funded PPA and its governing body was in accordance with the section 90 of AP Reorganisation Act, 2014. The draft Cabinet note for the setting up of the authority had received the backing of the Ministries of Environment and Forests, Finance, Home Affairs, Law and Justice, Personnel, Public Grievances and Pensions, Power, Rural Development, Tribal Affairs and the Planning Commission. All the assets and liabilities of the Polavaram project will be transferred to the authority and a separate PPA fund would also be created to which the funds released by the Centre will be credited. The multipurpose Polavaram project is expected to irrigate 2.91 lakh hectares, generate 960 mw of power and supply 23.4 tmc drinking water to Visakhapatnam city and also to Vizag steel plant. It will also facilitate an inter-basin transfer of 80 tmcft annually to the Krishna river basin.