The Central Government has transferred a grant of Rs 979.36 crore for the amount spent by the Andhra Pradesh state government on Polavaram project. The Central Government has decided to sanction Rs 24,000 crore by 2019 for this project by making an allocation of Rs 3,500 crore this year and Rs 9,000 crore annually for the next two years. However, reports state that the allocations may increase year on year basis as the Rs 24000 crore is initial allocation. The allocations will be made from the long-term fund setup by center for completing the irrigation projects in the country. NABARD is also providing loans to people.

However as per the guidelines from the center, the State Government or Polavaram Project Authority has to ensure that the expenditure is on par with the project targets. If the progress of work is not as expected, they have to quote the reasons for the same. An independent agency should be established, for quality control which will submit a report to the center at the end of each financial year. Project Monitoring Division (PMU) has to be set up to ensure the work is completed in the appropriate time.