CM Exempts GST on Works by Irrigation, Water Associations

Vijayawada: Underlining his government’s commitment to strengthening participatory irrigation management, Chief Minister N. Chandrababu Naidu on Thursday announced that all works undertaken by irrigation and water users associations will be exempt from Goods and Services Tax (GST).
Addressing a large gathering at the Parade Neeru Pragathi, Jala Harathi program near Nelapadu in Amaravati, the Prime Minister asked the irrigation unions to work towards a clear target of ensuring water supply to every acre of agricultural land.
He said Andhra Pradesh, once known for farmer distress and suicides, has transformed into a farmer-friendly state due to focused management and well-planned irrigation strategies. Recalling the evolution of irrigation in Rayalaseema, Naidu said the visionary initiatives launched during the NTR era led to major projects like Handri-Neeva, Galeru-Nagari and Telugu Ganga. Since then, programs such as Neeru-Chettu, construction of recharge pits and promotion of micro-irrigation with subsidies of up to 90 per cent have helped increase groundwater levels and transform drought-prone Anantapur into a thriving horticulture hub. “Rayalaseema will have a golden future under the NDA government,” he said.
Highlighting the role of water users’ associations, the Prime Minister said that the system, first introduced in 1997, has led to the construction of more than 14 lakh water conservation structures. He alleged that the previous regime neglected such water bodies. Naidu announced that 344 billion rupees have been spent on more than 7,000 operations and maintenance works through farmer bodies this year and the nomination limit has been increased to 10 lakh rupees. Efficient water management ensured healthy reservoir levels. He assured that water would be delivered to the nurseries by May 15.
Saying that interconnection of rivers and irrigation of every acre is the “real Jala Harathi”, the CM said AP had invested Rs 68,000 crore in irrigation between 2014 and 2019. He claimed that with the Centre’s support, the Polavaram project will be completed before June 2027, paving the way for river interconnection and supplying water to Andhra and Rayalaseema on the north coast.
Referring to YSRC allegations regarding the Rayalaseema lift irrigation project, Naidu accused the opposition party of trying to mislead the people. He reiterated that the NDA government will ensure water security in all regions, including Rayalaseema, while also promoting industrial growth and creating employment for 23 lakh people with investments of ₹20 lakh crore under the leadership of Prime Minister Narendra Modi and in partnership with Deputy Prime Minister K. Pawan Kalyan.
Ministers Nimmala Ramanaidu, K. Atchannaidu and Kandula Durgesh, state BJP president PVN Madhav, public representatives and senior officials attended the meeting.
Earlier, the Federation of State Irrigation Water Users’ Associations (IWUA) had requested the Chief Minister to withdraw the Goods and Services Tax (GST) imposed on work undertaken by irrigation unions and actively involve them as partners in rural development programmes.
A. Venkata Gopalakrishna Rao, state president of the federation and vice-chairman of the Nagarjunasagar Left Canal Project Committee, had submitted a detailed memorandum in this regard to Chandrababu Naidu in the presence of Water Resources minister Ramanaidu.




