Andhra Pradesh drops ₹90,000cr Polavaram project, plans new ₹58,000cr project

India Nov 10, 2025

Andhra Pradesh has dropped its massive ₹90,000 crore Polavaram-Banakacherla irrigation plan after Telangana pushed back and the central government was reluctant to fund it.
Telangana was worried about losing river water and possible flooding from Polavaram's backwaters, prompting the project to be called off.

New project to divert Godavari river water

Now, the state is planning a new ₹58,000 crore project to bring much-needed Godavari river water to drought-hit Rayalaseema.
The idea is to divert water from Polavaram to Nallamala Sagar reservoir through the Veligonda project in Prakasam district, with new canals connecting key reservoirs.
If needed, extra water could even be sent further south in later phases.