Amaravati/Vijayawada, November 10, 2025
In a significant de-escalation of long-simmering inter-state water wars, the Andhra Pradesh government under Chief Minister N. Chandrababu Naidu has officially scrapped the controversial Polavaram-Banakacherla irrigation project, bowing to vehement opposition from neighboring Telangana and the Centre's funding hesitancy. The decision, announced late Sunday, has been hailed by Telangana as a "victory for natural justice" while prompting Andhra to pivot toward a scaled-down alternative aimed at quenching the thirst of its drought-prone Rayalaseema region without reigniting border tensions.
The Polavaram-Banakacherla project, first envisioned in 2014 shortly after Andhra's bifurcation from Telangana, was an audacious engineering feat designed to harness approximately 2,000 thousand million cubic feet (tmc ft) of surplus Godavari floodwaters annually—waters that currently flow untapped into the Bay of Bengal. Valued at an eye-watering Rs 90,000 crore, the scheme proposed linking the Godavari basin to the Krishna via a network of reservoirs, canals, lift irrigation systems, and tunnels, ultimately channeling water to reservoirs like Banakacherla (capacity: 150 tmc ft) and onward to the parched farmlands of Rayalaseema districts such as Prakasam, Kurnool, and Anantapur. Proponents, including Naidu's Telugu Desam Party (TDP) administration, touted it as a lifeline for irrigation, drinking water, and hydropower generation, potentially irrigating over 10 lakh acres and generating 1,000 MW of power.
However, the project quickly became a flashpoint in the fragile water-sharing ecosystem between the two states, rooted in the Andhra Pradesh Reorganisation Act of 2014 and rulings from the Godavari Water Disputes Tribunal (GWDT) and Krishna Water Disputes Tribunal. Telangana, as the upper riparian state, was allocated 968 tmc ft of Godavari water under the GWDT—far more than Andhra's 500 tmc ft—but contested Andhra's claim to "surplus" waters, arguing that the diversion would erode its downstream allocations and violate tribunal mandates requiring consultations with bodies like the Godavari River Management Board (GRMB) and Central Water Commission (CWC). The Krishna leg added fuel to the fire: Andhra's plan to pump Godavari surplus into the Krishna basin (beyond the tribunal-mandated 80 tmc ft diversion for sharing with Karnataka and Maharashtra) threatened Telangana's 299 tmc ft share from the basin's 811 tmc ft pool, as per post-bifurcation pacts.
Environmental red flags further derailed the initiative. Critics, including environmentalists and Telangana officials, warned of catastrophic ecological fallout: reduced freshwater inflows to the Godavari and Krishna deltas could spike salinity, decimate fisheries, erode sediments vital for agriculture, and disrupt mangrove ecosystems. Tunneling through the ecologically sensitive Nallamala forests risked habitat loss for endangered species like tigers and elephants, soil destabilization, and displacement of indigenous communities. In June, the Central Environment Appraisal Committee (EAC) withheld clearance, demanding a full Environmental Impact Assessment (EIA), alignment with the 1980 GWDT verdict, and mandatory inter-state dialogue—clearances Andhra had bypassed in its haste to fast-track tenders.
Telangana's Congress government, led by Chief Minister A. Revanth Reddy, mounted a relentless campaign against the project, terming it a "theft of our water heritage" and a direct threat to over 50 villages vulnerable to Polavaram backwater inundation. Irrigation Minister N. Uttam Kumar Reddy declared in October that "Telangana won't allow the Banakacherla project at any cost," while the state fired off strongly worded objections to the CWC and Polavaram Project Authority, highlighting the lack of statutory approvals. The Revanth regime, once a TDP ally under Naidu's mentorship, framed the opposition as a defense of "natural justice," accusing Andhra of unilateralism that could deprive Telangana of its rightful Krishna and Godavari shares.
The tipping point came with the Centre's cold shoulder on funding, as Union Jal Shakti Ministry sources indicated reluctance to bankroll a project mired in disputes. On November 7, Andhra abruptly canceled all tenders for the Detailed Project Report (DPR), a move confirmed by Water Resources Department officials in Amaravati. "The original blueprint, while visionary, faced insurmountable hurdles in clearances and collaborations," a senior Andhra bureaucrat told reporters on condition of anonymity. "We're recalibrating to ensure water security for our farmers without compromising on federal harmony."
In its place, Andhra unveiled a revised Rs 58,000 crore blueprint on Monday, focusing on integrating Polavaram's output with existing infrastructure. The new plan envisions pumping water from Polavaram to the Prakasam barrage on the Krishna, followed by a dedicated canal linking to Nagarjuna Sagar's right bank canal. From there, diversions would feed the Bollapalli reservoir near Vinukonda and the Nallamala Sagar reservoir— a cornerstone of the ongoing Rs 7,000 crore Veligonda Project—before optional routing to Somasila as needed. The contentious Banakacherla phase has been deferred indefinitely, pending the first phase's success. Naidu, addressing a press conference in Vijayawada, emphasized pragmatism: "Rayalaseema's drought can't wait for endless litigation. This revised path leverages what we have, accelerates delivery, and respects our neighbors' concerns."
Reactions poured in swiftly. Telangana's Reddy celebrated the scrapping as a "diplomatic triumph," tweeting: "Our firm stance has protected our waters and villages. True federalism prevails when states listen to each other." Andhra's Deputy CM Pawan Kalyan echoed a conciliatory tone, stating, "This isn't retreat; it's strategy. We've averted a needless war over water in a year of climate uncertainties." Yet, whispers in TDP circles suggest internal grumbling over the cost blowout and delays, with some farmers' unions in Rayalaseema protesting the pivot as a "half-measure."
The implications ripple far beyond the two states. By sidelining Banakacherla, the move eases immediate tensions in the Krishna-Godavari basin, potentially paving the way for smoother GRMB meetings and CWC-mediated talks on surplus sharing—a perennial sore spot since bifurcation. Environmentally, it sidesteps the Nallamala tunnel's perils, offering a breather to the Eastern Ghats' biodiversity. For Andhra, the revised scheme promises quicker wins: Veligonda's completion could irrigate 2.5 lakh acres by 2027, a fraction of Banakacherla's ambition but a vital step against recurring droughts exacerbated by El Niño patterns.
This saga, however, underscores the fragility of India's federal water compact. As climate change amplifies scarcity— with Godavari flows already down 20% in lean years—experts urge a national framework for surplus utilization, beyond ad-hoc tribunal fixes. For now, the scrapped project marks a rare instance of compromise in the Deccan plateau's hydraulic heartland, where rivers have long outlasted political boundaries. As Naidu put it: "Water doesn't vote; it sustains. Let's share it wisely."
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