₹1,000 Crore sanctioned for Polavaram rehabilitation as Govt calls it a symbol of people’s pride

A fund of ₹1,000 crore has been released by the Andhra Pradesh Government for the rehabilitation and resettlement (R&R) of families affected by the Polavaram Irrigation Project, which is widely regarded as the lifeline of the state. The announcement was made by the Information and Public Relations (I&PR) Department through its official X handle on Saturday, marking what was described as a “historic step” towards completing the state’s most ambitious water infrastructure project.

The fund release has been presented as a significant milestone in advancing the “One Nation, One Water” vision and ensuring prosperity for every farmer and family dependent on the Godavari basin. The event was held at Veleru Padu village, coinciding with the observance of Andhra Pradesh Formation Day, which added symbolic importance to the announcement.

According to government sources, the ₹1,000 crore allocation is intended exclusively for R&R works. The amount is expected to be utilized for constructing housing, developing infrastructure in resettlement colonies, and compensating displaced families. The rehabilitation package will also cover livelihood support and basic amenities in relocated habitations. The funds are likely to be implemented through the Water Resources Department and supervised by the Polavaram Project Authority (PPA).

Polavaram, officially known as the Indira Sagar (Polavaram) Multipurpose Project, is being built across the Godavari River near Polavaram village in Eluru district. The project, declared a National Project under the Andhra Pradesh Reorganisation Act of 2014, is being executed by the State Government with financial assistance from the Centre. The approved project cost is ₹55,548 crore at the 2017–18 price level.

The project is designed to irrigate 4.36 lakh hectares of agricultural land in East Godavari, West Godavari, and Krishna delta regions, supply 23.44 TMC of drinking water to about 540 villages, and generate 960 MW of hydroelectric power. In addition, 80 TMC of surplus Godavari water is planned to be diverted to the Krishna River basin to support drought-prone regions of Rayalaseema and south coastal Andhra.

The initiative, first conceptualized in 1941 and formally launched in 2005 by the late Chief Minister Y.S. Rajasekhara Reddy, has faced multiple delays due to funding gaps, technical challenges, and resettlement issues. Around 1.06 lakh families from 371 villages across Eluru, East and West Godavari, and Alluri Sitharama Raju districts are affected by submergence. About 70 percent of the R&R works have been completed so far, while civil components such as the spillway and approach channel have already been finished.

Officials indicated that the ₹1,000 crore fund would expedite pending R&R activities, particularly housing and compensation payments, and pave the way for raising the reservoir level in subsequent phases. The government expects the entire R&R process to be completed within the next year, enabling further construction and central reimbursement under the national project framework.

Polavaram is often referred to as the “lifeline of Andhra Pradesh” because of its critical role in ensuring water security, promoting agricultural stability, and providing clean energy. The project is also viewed as a symbol of unity and progress in the post-bifurcation era. Once completed, it is expected to transform irrigation patterns, enhance rural livelihoods, and contribute significantly to the state’s economic growth.

As of November 2025, civil works of the project are estimated to be 85 percent complete, and the government has set 2026 as the target year for operational readiness. Officials have stated that with steady funding and timely rehabilitation measures, the long-standing dream of completing Polavaram may soon become a reality.