A proposal to set up an authority to speed up environmental and investment clearances for the Polavaram multi-purpose project in Andhra Pradesh today received the nod of the Union Cabinet. The proposed Polavaram Project Authority will be an autonomous body under the Union Water Resources Ministry. The dedicated 'special purpose vehicle' will be tasked to to obtain all requisite clearances including environmental and forest and work to create investment and rehabilitation norms, according to the proposal. Sources said the proposal was cleared by the Cabinet at its meeting held here this evening. "The Authority shall also ensure expeditious execution, regulation and development of the project while simultaneously ensuring implementation of adequate environmental safeguard measures and proper rehabilitation of those dispaced," sources said quoting the proposal. Since the proposed Authority will work under the central government, it is expected to instill confidence in both the successor states of Telangana and Andhra Pradesh as well as other riparian states of Odisha and Chhattisgarh that the execution of the project is being carried out in a transparent and equitable manner. Telangana is expected to come into being as the 29th state of India on June 2. The Polavaram project has been declared as a national project recently. The proposed body will be headed by a Chief Executive Officer (CEO) to be appointed by the central government from among Additional Secretary-level officers empanelled for the purpose. Besides, Principal Secretaries or Secretaries in charge of irrigation and water resources departments of AP and Telangana will be its members. The Authority will function under the "general supervision" and control of a governing body headed by the Union Water Resources Secretary. Polavaram is a multi-purpose project with an assessed culturable command area of 2.91 lakh hectares and power generation potential of 960 MW. It also has a provision for supply of 23.44 thousand million cubic feet (TMC) drinking water for supply to Vishahapatnam city and other areas. An inter-basin transfer of 80 TMC of water annually for Krishna river is also planned. The final clearance of the project by the Forest and Environment Ministry is pending and so is the investment clearance from the Planning Commission for the revised cost estimate of Rs 16010.45 crore. A number of cases have been filed pertaining to the project in the Supreme court, including those filed by Chhattisgarh and Odisha governments. No final decision has yet been given by the apex court.