calender_icon.png 5 March, 2026 | 6:46 AM

Palamuru Lift Project Stalled

04-03-2026 12:00:00 AM

FUND FREEZE

■ PRLIS stalled over fund crunch.

■ Rs 2,000 crore dues pending.

■ 80% works done; canal incomplete.

■ Motors ready but idle.

■ 12 lakh acres to benefit.

Metro India News | Hyderabad

The ambitious Palamuru–Rangareddy Lift Irrigation Scheme (PRLIS), envisioned as a lifeline for six drought-prone districts of Telangana, has once again come to a grinding halt at its final stage due to shortage of funds. Despite over 80 per cent of the construction works being completed, the project remains stuck amid pending payments, unresolved rehabilitation issues, and delayed financial clearances.

The prestigious irrigation project, located in Chief Minister A. Revanth Reddy’s home district, was designed to provide irrigation water to the erstwhile Mahabubnagar region and surrounding districts. However, with nearly Rs 2,000 crore in contractor bills and rehabilitation compensation yet to be cleared, progress has slowed drastically. Contractors have reportedly made it clear that works will resume at full pace only after pending dues are released.

Six major reservoirs under the project are ready for trial operations, but the government has not yet released the required funds to operationalize them. Key works related to pump houses, canals, and reservoir structures are moving at a snail’s pace. Though motors are ready for dry runs in some pump houses, they cannot be commissioned because canal connectivity and water storage processes remain incomplete.

As part of the project, the Anjanagiri, Veeranjaneya, Venkatadri, Kurumurthiray, and Uddandapur reservoirs have reached the final stages of construction. Concrete works, installation of motors, and pump house construction are largely completed. Yet, contractor bills amounting to more than Rs 2,000 crore remain pending, creating financial uncertainty and bringing works to a near standstill. The Uddandapur pump house works have come to a complete halt due to delayed fund release. Lining and structural works in Edula and Vattem regions are progressing slowly. Several project packages have reportedly been suspended altogether. Meanwhile, the 16-kilometre tunnel from Narlapur to Edula has been completed. However, a crucial 2.5-kilometre stretch of open canal required to carry water further remains unfinished, preventing water from being filled into four major reservoirs.

Large-scale earth excavation of nearly 15 lakh cubic metres is still pending. Canal construction continues at a slow pace. Officials indicate that if the remaining 2.5-kilometre canal stretch is completed, water storage in four main reservoirs could begin immediately. However, funding constraints have stalled even these final works.

In the pump houses at Narlapur, Edula, Vattem, and Uddandapur, installation of motors is almost complete. At Narlapur, four out of eight motors are ready; at Edula, five out of ten; at Vattem, five out of ten; and at Uddandapur, three motors are prepared for operations. Some motors are technically ready for dry run tests, but without completed canals and active water storage, they remain idle.

Among the reservoirs, the 6.8 TMC capacity Anjanagiri reservoir has achieved 100 percent completion. The 8.55 TMC Veeranjaneya reservoir stands at 96 percent completion. The 16.58 TMC Venkatadri reservoir has reached 90 percent, while the 19.15 TMC Kurumurthiray reservoir is at 80 percent completion. The 15.91 TMC Uddandapur reservoir still has pending pump house and spillway works.

Rehabilitation and compensation issues have added another layer of delay. Displaced families in Narlapur and Edula areas reportedly have not received full compensation for their acquired lands. Allocation of plots in rehabilitation colonies is also said to be delayed. Due to unresolved compensation disputes, several affected families have not vacated submergence zones, preventing the completion of remaining works within reservoir areas.

If completed, the Palamuru–Rangareddy Lift Irrigation Scheme is expected to provide irrigation water to 12.30 lakh acres across Nagarkurnool, Mahabubnagar, Narayanpet, Rangareddy, Vikarabad, and Nalgonda districts. Additionally, it aims to supply drinking water to around 70 mandals. For the drought-hit Palamuru region, the project was projected as a transformative lifeline.

However, with contractor payments pending, rehabilitation issues unresolved, and financial approvals delayed, the project’s commissioning has once again slipped into uncertainty. Officials indicate that unless the Finance Department releases the required funds at the earliest, the long-awaited irrigation benefits for lakhs of farmers may continue to remain on hold.