Over one lakh people are affected by the Polavaram project and their rehabilitation was being envisaged, government said in Rajya Sabha on Monday.

During the Question Hour in Rajya Sabha, Minister of State for Water Resources, River Development and Ganga Rejuvenation Sanjeev Baliyan said that rehabilitation of these people was being envisaged as part of the project.

The minister said the estimated cost of the Polavaram irrigation project was Rs 16010.45 crore at the 2010-11 price level and the Centre would sanction funds as per the 2014-15 cost estimates. He said the AP government had not submitted the revised estimated cost of the project at price level 2014-15.

Responding to concerns raised by some members from Odisha, Balyan said the Andhra Pradesh government would construct the embankment of the project for which the Centre would provide the funding.

Earlier some opposition members including Congress leader Digvijaya Singh had sought to know whether the government had transferred its authority for the implementation of the project to the state government.