AMARAVATI, October 24 — The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu, approved the revised cost estimate for the Polavaram Multipurpose Irrigation Project at ₹1,05,472 crore (at 2026 prices), representing a 38% increase over the 2017 estimate of ₹55,548 crore. The Cabinet simultaneously resolved to formally petition the Union Ministry of Jal Shakti for ₹58,000 crore in Grant-in-Aid citing cost overruns caused by geological challenges and tribal rehabilitation mandates.
Background: Polavaram as a National Project
Polavaram is the only irrigation project in Andhra Pradesh accorded National Project status under Section 90 of the AP Reorganisation Act, 2014 — legally obligating the Central Government to bear its entire construction cost. The project straddles the Godavari river at the AP-Odisha-Chhattisgarh tri-junction and involves:
- Irrigation: 7.20 lakh hectares across East Godavari, West Godavari, Krishna, Vishakhapatnam, and NTR districts - Hydropower: 960 MW installed capacity (12 generating units of 80 MW each) - Drinking water: Supply to 540 habitations and 29.52 lakh people in 3 municipal corporations - Navigation: Linkage to IWAI National Waterway-4 (Krishna River)
Revised DPR Breakdown (WAPCOS, 2026)
| Component | Cost (₹ crore) | |---|---| | Civil Construction | 68,400 | | Rehabilitation & Resettlement | 18,920 | | Hydro-mechanical Works | 7,200 | | Power House (960 MW) | 5,900 | | Environmental Management | 3,800 | | Road Network & Bridges | 1,252 | | Total | 1,05,472 |
Progress & Timeline
The 5.5-km head-race tunnel through the Eastern Ghats is 74% complete. The spillway (46 radial gates) is structurally finished; gate installation is 60% complete. Earthen dam embankment is at EL+40 m against the target EL+45.72 m (Full Reservoir Level). The project is targeted for first impoundment in Kharif 2028.
Tribal Rehabilitation (The Core Challenge)
1,06,480 tribal families from 371 villages across Polavaram mandal face submergence. The AP Tribal Welfare Department has constructed 14,500 houses at 8 resettlement colonies, with 68% of affected families relocated. The Supreme Court-mandated Environmental Compliance Cell has cleared 228 of 371 villages for displacement.
Central-State Dispute
The Centre had released ₹10,700 crore till 2023-24 under the National Project grant head. AP's updated demand of ₹58,000 crore (the remaining balance at revised estimates) is pending approval of the revised DPR before the Central Water Commission (CWC) Technical Advisory Committee.
Exam Relevance: APPSC Group-1 Mains (GS Paper I — Geography of AP; GS Paper II — Centre-State Relations; GS Paper III — Water Resources). APPSC Group-2 Prelims (AP Economy & Current Affairs). AP Police SI, DSP exams (General Studies). Key facts to remember — National Project status: AP Reorganisation Act 2014; River: Godavari; Capacity: 960 MW + 7.2 lakh ha irrigation; Revised cost: ₹1,05,472 crore; Location: Polavaram, West Godavari district.