Hyderabad: The Telangana government has cancelled the contract for the Keshavapuram reservoir project, initially planned under the Godavari Phase 2 scheme to supply drinking water to Hyderabad.
Originally designed by the Bharat Rashtra Samithi (BRS) government to bring water from Kondapochamma Sagar to Keshavapuram and onward to the city, the project was expected to fulfil Hyderabad’s water needs until 2050, according to K T Rama Rao (KTR).
However, the new Congress government has opted to scrap this plan and pursue a more cost-effective alternative.
The contract held by Megha Engineering and Infrastructure (MEIL) was terminated through an official order after the company sought revised estimates to reflect current rates, a request the government denied.
The annulment of this tender is projected to save approximately Rs 2,000 crore in funds that will now support an extension of the Godavari Phase 2 scheme from Mallannasagar to Osman Sagar and Himayat Sagar reservoirs to address Hyderabad’s water demands.
Under the revised plan, the government intends to pump 15 TMC water from Mallannasagar, with 10 TMC earmarked for Hyderabad and 5 TMC for the twin reservoirs.
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This change, which has received cabinet approval, shifts the original design to a gravity-based alignment, minimizing the need for pumping and significantly lowering operational and electricity costs. Instead of requiring water to be lifted six times, the new alignment reduces this to just two pump points, stretching over approximately 162 kilometres to reach Osman Sagar.
This revised project design is expected to lower the water supply cost to around Rs 4 per kiloliter, a sharp reduction from the current rate of Rs 48 while still meeting Hyderabad’s growing water requirements.
