Banakacherla Project: Water dispute between Andhra Pradesh and Telangana

The Banakacherla project, which seeks to interconnect the Godavari basin to the Krishna basin, has sparked old water-sharing controversies between Andhra Pradesh and Telangana once again in 2025, with Andhra Pradesh attempting to divert surplus floodwaters from the Godavari to the drought-prone Rayalaseema and Telangana asserting that the project breaching several inter-state agreements on water usage. The project encounters multiple hurdles relating to environmental issues, legal issues, and inter-state issues.

Banakacherla Project

The Banakacherla project envisions the transfer of floodwaters from the Godavari to the Krishna basin. This transfer will include modifications or additions to canals, reservoirs, and lift irrigation schemes. The floodwaters will be harvested from the Polavaram Dam, and diverted to the Krishna river at Vijayawada, then through canals and tunnels under the Nallamala forests to Banakacherla reservoir. The project is aimed to benefit areas in Rayalaseema’s Kadapa and Kurnool districts. The project is estimated to cost more than ₹80,000 crore, and require more than 40,000 acres of land, including forested land.

Water Allocation Context Legal Context

There are agreements and tribunal awards that govern water allocation. The Krishna Water Disputes Tribunal apportioned 2130 tmc ft of water among Andhra, Karnataka, and Maharashtra. Following the bifurcation, Andhra and Telangana agreed upon water shares from Krishna waters. The Godavari Water Disputes Tribunal allocated 1486 tmc ft to the undivided Andhra Pradesh, which included 80 tmc ft of water to be taken from the Polavaram Dam. Andhra claims that the Banakacherla project will actually only use surplus Godavari waters that flow into the sea unused, and will therefore follow the directives in the Andhra Pradesh Reorganisation Act, 2014.

Telangana’s Opposition and Concerns.

Telangana claims that the project violates the Reorganisation Act and will threaten its water security. It has argued that the allocation of Godavari water has no surplus water and that Andhra Pradesh proceeded without proper clearances and without conducting a proper impact assessment. Telangana is demanding transparency and that the project must be undertaken within the legal framework before it can be implemented.

Environmental and Ecological Impacts.

Experts warn that the project can result in interception of the natural flow of the river and the decline in the availability of freshwater upstream for the deltas. This could result in further salinity intrusion and detrimentally impact agriculture, fisheries and mangroves. This would also result in diminished soil fertility. Tunnelling through the Nallamala forests would also displace wildlife habitat of endangered species and threaten local indigenous communities. Further, there have been several alternative ways to manage water, such as groundwater recharge and rainwater harvesting to limit dependence on rivers.

Current status and regulatory response.

Recently, the Central Environmental Expert Committee denied environmental clearance for the project, based on environmental concerns, legal concerns and interstate water-sharing issues. It also noted that environmental and impact assessment studies must be conducted. Furthermore, the committee noted that the no project can be allowed to proceed without consultation with the Central Water Commission and consideration of the Godavari Water Disputes Tribunal verdict of 1980. As such, Andhra Pradesh must resubmit a revised project proposal when the time is right for regulatory approval.