The Congress government in Telangana is considering a steep upward revision of irrigation project costs, with proposals amounting to Rs 1.26 lakh crore discussed at the Cabinet meeting. In the first phase alone, schemes including Palamuru‑Rangareddy and SLBC may see a hike of Rs 35,000 crore.
Published Date – 17 July 2026, 11:33 PM
Hyderabad: The State government is reportedly planning a massive revision of the estimated costs of several major irrigation projects, citing factors like rising prices of raw materials, the impact of GST, design modifications, and other reasons. The proposals were discussed during the Cabinet meeting held here on Friday, sources said.
According to sources, the government is considering increasing the cumulative cost of various irrigation projects by around Rs.1.26 lakh crore.
In the first phase, the estimated costs of the Sitarama Lift Irrigation Scheme, Devadula Lift Irrigation Scheme, Palamuru-Rangareddy Lift Irrigation Scheme, Narayanpet-Kodangal Lift Irrigation Project, and the Srisailam Left Bank Canal (SLBC) project are learnt to have been proposed for revision by nearly Rs. 35,000 crore.
Interestingly, the Cabinet also decided to constitute a Special Enquiry Team (SET) to probe the alleged irregularities in the Dharani portal. The announcement was made by Revenue Minister Ponguleti Srinivas Reddy while briefing the media on the Cabinet decisions.
However, there was no official announcement regarding the proposed escalation of irrigation project costs, giving rise to speculation in political circles that the SET announcement was an attention diversion tactic.
Since the Congress government assumed office, only a few new irrigation projects have been launched, while work on several ongoing projects has continued. Although foundation stones have been laid for some schemes, the works are being taken up at snail’s pace due to a shortage of funds.
The Palamuru-Rangareddy Lift Irrigation Scheme, originally conceived in 2015 with an estimated cost of Rs. 35,250 crore, had its cost revised to Rs. 55,086 crore. Sources indicate that the government is now planning another substantial upward revision.
Similarly, the estimated cost of the Narayanpet-Kodangal Lift Irrigation Project has risen to Rs.4,725 crore, of which Rs.1,197.61 crore has reportedly been earmarked for land acquisition, raising concerns in some quarters.
The estimated cost of the SLBC Project, which had earlier been revised from Rs. 4,500 crore to Rs. 6,000 crore, is now learnt to be under consideration for a further increase to around Rs.12,000 crore.
