Polavaram-Banakacharla Project Reconsideration Govt

The Andhra Pradesh government is rethinking the ambitious Polavaram–Banakacharla link project. Initially planned at an estimated cost of ₹81,900 crore across three phases, the Water Resources Department is now preparing for a major redesign. Instead of extending the water transfer up to Banakacharla, officials are considering limiting it to Nallamala Sagar, reducing the cost to around ₹49,550 crore. The revised plan proposes implementation in two phases.

After the government invited tenders last month for preparing a Detailed Project Report (DPR), objections poured in from Telangana, Karnataka, and Maharashtra. These states strongly opposed Andhra Pradesh’s proposal to lift 2 TMCs of Godavari floodwater per day, citing inter-state water disputes. Experts too warned that diverting Godavari water to the Krishna basin could force Andhra Pradesh to share 80 TMCs of Krishna water with the upper states. Instead, they suggested constructing an aqueduct near Damuluru (Ibrahimpatnam) to channel water more efficiently.

The funding structure under discussion includes 50% foreign loans, 20% central assistance (₹9,910 crore), 10% state share (₹5,000 crore), and 20% private participation (₹9,910 crore).

Phase one is expected to cost ₹13,800 crore and phase two ₹35,750 crore. The government plans to cancel the old PFC and issue fresh tenders for a new DPR focused on the Polavaram–Nallamala Sagar route.

Construction Plan:
Water from the Godavari will be carried through the Tadipudi flood canal into the Polavaram right main canal, reaching up to Damuluru (175 km). From there, it will be lifted into the Nagarjuna Sagar right canal near Harishchandrapuram and finally extended to Nallamala Sagar via a 29-km stretch of new tunnels. A final decision is expected soon.