₹5,461 crore Keshavapuram storage reservoir contract cancelled

The state government has asked the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) to invite tenders for the Godavari Drinking Water Supply Project Phase II and rejuvenation of Osmansagar and Himayatsagar reservoirs for the Musi River cleaning project.

The state government has announced cancellation of the contract for construction of 10 tmcft raw water storage reservoir at Keshavapuram with associated components under Godavari river source for drinking water needs of Hyderabad under hybrid annuity mode.

Land acquisition not over yet

In the orders issued on Wednesday, Municipal Secretary M. Dana Kishore said the proposed construction of a redesigned storage reservoir of 5.04 tmcft capacity at Keshavapuram with associated components and additional withdrawals of 10 tmcft from Kondapochamsagar with WTP at Ghanpur had been canceled because project works were not kept on the ground due to non-completion of land acquisition or disposal.

The termination will take place in accordance with the terms and conditions of the agreement with the mutual consent of HMWS&SB and concessionaire MEIL. The cost of the Keshavapuram project up to Ghanpur was estimated at ₹4,369.37 crore (using SSR rates for 2017-18). But the project could not be grounded due to land issues, resulting in an increase in the projected cost to ₹5,461 crore with a revised standard schedule of rates from 2024-25, an increase of ₹1,093.63 crore.

The cost of the Godavari Phase-II project from Mallannasagar to Osmansagar is estimated at ₹5,560 crore – ₹3,020 crore for package I from Mallannasagar to Ghanpur and another ₹2,540 crore under package II from Ghanpur to Osmansagar. This would mean that water could be brought to Osmansagar and Himayatsagar within the expected cost of the Keshavapuram project.

In view of this, Godavari Phase-II has been designed from Mallannasagar as a source for meeting the drinking water needs of Hyderabad and rejuvenating the Musi River, sources said.