The Telangana government has cancelled the contract for the Keshavapuram reservoir project, initially designed to supply drinking water to Hyderabad. The project, worth approximately Rs 2,000 crore, was scrapped after Megha Engineering and Infrastructure sought revised estimates to reflect current rates, which the government denied.

Instead, the government will pursue an extension of the Godavari Phase 2 scheme from Mallannasagar to Osman Sagar and Himayat Sagar reservoirs. This revised plan will pump 15 TMC water from Mallannasagar, with 10 TMC earmarked for Hyderabad and 5 TMC for the twin reservoirs. The new alignment reduces pumping requirements, significantly lowering operational and electricity costs.

The revised project is expected to lower the water supply cost to around Rs 4 per kiloliter, down from Rs 48. This change aims to meet Hyderabad’s growing water requirements while saving funds. For more information on this development and its implications, consider checking online news sources or official government announcements.