The estimated cost of constructing the Polavaram irrigation project has risen sharply to ₹62,436 crore, according to the latest projections by project authorities. The revised estimate combines funding approved for the first phase and the projected requirement for the second phase of construction.
Two-Phase Construction Plan
Under the first phase, the Centre approved works to allow water storage up to +41.15 metres. For this phase, the Union government sanctioned ₹30,436.95 crore. However, the second phase aims to raise water storage capacity to +45.72 metres, which will require additional funding.
Polavaram officials have made a preliminary estimate of nearly ₹32,000 crore for the second phase. They are currently preparing detailed calculations and plan to submit formal proposals to the Centre soon. Once approved, the total project cost will reach ₹62,436 crore. Officials said greater clarity on these estimates is expected in the coming weeks.
CM Seeks Second-Phase Funds
Chief Minister N. Chandrababu Naidu recently met Union Jal Shakti Minister C. R. Patil in New Delhi. During the meeting, he submitted a letter seeking central assistance for the second phase of the project. The state government hopes the Centre will respond positively to ensure uninterrupted progress.
Central Funding So Far
Since Polavaram was declared a national project, the Centre has released ₹23,658.40 crore over the past 11 years. Against the first-phase approval of ₹30,436.95 crore, the Centre still needs to release about ₹6,645 crore.
Unlike earlier years, the Centre now provides funds in advance. As a result, the state no longer faces reimbursement delays. Officials said around 80 percent of the advance funds already released have been spent. Therefore, they have submitted proposals to the Polavaram Authority seeking another tranche of funds. The state aims to mobilise up to ₹3,034 crore during the current financial year.
Appeal for Additional Canal Funding
The state government has also sought additional funds for the project’s canal works. As per the 2009 Detailed Project Report (DPR), the left canal was designed for a capacity of 8,123 cusecs, while the right canal was planned for 11,654 cusecs.
However, following recommendations by the Technical Advisory Committee in 2019, both canals are being constructed with an enhanced capacity of 17,500 cusecs. While the right canal construction is complete, work on the left canal is still in progress.
Despite the increased capacity, the Centre has calculated costs based on the 2009 DPR. It approved only 93 percent of the right canal cost and 77 percent of the left canal cost, cutting the remaining amounts. The state has urged the Centre to reimburse the full expenditure incurred for the enhanced canal capacity. Chief Minister Chandrababu Naidu raised this issue again during his recent Delhi visit.
Cost Escalation Over the Years
The original cost estimate for the Polavaram project stood at ₹10,151.03 crore in 2005–06. Over the years, delays and rising prices led to multiple revisions in 2010–11, 2013–14, and 2017–18. Now, with the second phase of construction in focus, authorities have revised the estimates once again.
Officials said timely funding and coordinated execution are crucial to speed up construction and rehabilitation works, ensuring the long-delayed project moves closer to completion.
