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Naidu govt cancels Banakacharla tender, for now!

Naidu govt cancels Banakacharla tender, for now!

At least for now, the much-hyped Polavaram-Banakacharla link project of the Andhra Pradesh government headed by chief minister N Chandrababu Naidu, aimed at diverting Godavari waters to Krishna river basin, has come to a halt.

On Friday, the state cancelled the tender process for the preparation of the Detailed Project Report (DPR) of the contentious Polavaram-Banakacharla Link Project. 

Though the exact reason for the decision is not now, it is believed that the decision was taken following strong opposition from the Telangana government and after reviewing technical and financial parameters. 

Telangana raised strong objections, arguing that the project infringes on its water rights and could cause adverse backwater and cascading submergence effects.

The Central Environmental Expert Committee (EAC) had already refused to grant environmental clearance for the project in July 2025, citing multiple objections and emphasizing that any progress must align with the 1980 Godavari Water Disputes Tribunal (GWDT) award.

The EAC and the Polavaram Project Authority (PPA) noted that the project involves inter-state issues, and Andhra Pradesh was advised to obtain a comprehensive assessment of surplus Godavari waters from the Central Water Commission (CWC) and resolve disputes with co-basin states before proceeding.

Telangana contended that the proposed diversion of an additional 200 tmc of water was not part of the approved Polavaram project DPR and violated the provisions of the Godavari and Krishna Water Disputes Tribunal awards.

The tender notice, originally issued on October 11, was withdrawn by the AP Water Resources department on November 7, 2025.

A revised notification is likely to be issued after an updated feasibility study is completed and the inter-state issues are addressed. 

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