Telangana’s crucial Sitarama Lift Irrigation Project faces huge cost escalation

When CM A Revanth Reddy inaugurated the project on Aug 15, it was projected to cost Rs.18,000 cr upon full completion. However, revised estimates submitted to the govt now put the cost at Rs.19,800 cr

Hyderabad: The Sitarama Lift Irrigation Project (SLIP), aimed at meeting the irrigation needs of 3.28 lakh acres of new ayacut and help stabilize 3.45 lakh acres of old ayacut in Khammam, Bhadradri Kothagudem, and Mahabubabad, is poised to experience a huge escalation in its estimated cost. This will make it an uphill task for the State government to meet the deadline set for its completion and to mobilize additional resources to ensure its completion.

A major part of the project such as the head works were completed during the previous BRS government. Nearly 90 percent of the project works were already implemented in the previous regime, with only the distributary system and ancillary works yet to be completed.

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In June this year, the process of revising the estimated costs began, and when Chief Minister A Revanth Reddy inaugurated the project on August 15, it was projected to cost Rs.18,000 crore upon full completion. However, revised estimates submitted to the government now put the cost at Rs.19,800 crores, up from Rs.13,059 crore in 2018 and Rs.7,926 crore in 2016.

This over 51 percent escalation in the estimated cost has raised many eyebrows. The State government wants to complete the project by March 2026, but the implementation of works on the distributary system is facing delays due to pending administrative approvals and clearances.

Originally scheduled for completion by August 2024, the project’s timeline has now extended, with completion expected to stretch beyond March 2026. Over Rs 8,000 crore have already been spent on the project, and an additional Rs 11,800 crore are required for completion, according to the revised estimates.

This substantial financial requirement raises concerns among the people in the beneficiary districts about whether the State government can make such a huge expenditure within the next one and a half years without impacting other projects.

The Chief Engineer of the project submitted revised estimates for approval in October, following pressure from elected representatives in the beneficiary districts. Prior to presenting the revised estimates, tenders for works on the distributary system costing Rs 1,842 crore were called without administrative approval, thus sparking a controversy within the department.

A senior officer in the department attributed the cost escalation to substantial hike in the cost of material and 18 per cent GST that has come into effect after 2017. If the government could complete the project at least within the next one and a half year, it can be able to make huge saving on further escalation in the estimated cost, he noted.

• 51 percent hike in the estimated cost for SLIP from 2018-2024
• Government needs to spend Rs.11,800 crore to complete it
• Tenders for works costing Rs 1842 crore were called for last month.