Polavaram Project Expected to cost 7372 Cr – 3331 Crores Excess amount

Government of Andhra Pradesh earlier have accorded revised administrative approval for an amount of Rs.1175.935 Crores for construction of (i) Spillway of 985.50 M length (ii) Connectivity from the reservoir to right main canal and (iii) Connectivity from reservoir to left main canal of Indira Sagar Polavaram Project. Further Government have accorded administrative approval for Earth-Cum- Rockfill Dam across main river (including Spill Channel and Approach Channel) and   Hydro-Electric   Power   block   of   Indira   Sagar   Polavaram   Project   for Rs.2865.00 Crores.

The Engineer-in-Chief, Indira Sagar Polavaram Project, Dowlaiswaram in the  letters  has  reported  that  the  head  works  of  the  project consists of the following main components:

1)  Earth-cum-Rockfill Dam across Godavari.

2)  Spilway regulator in the right side saddle

3)  Left side connectivities

4)  Right side connectivities

5)  960  MW  Hydro  Electric  Power  Plant  including  Civil,  Electrical  and Mechanical works.

The   administrative   approval   for   Earth-cum-Rockfill   Dam   alone   is Rs.943.97 Crores.   The estimate for Earth-cum-Rockfill Dam including Spill Channel  and  Approach  Channel  was  technically  sanctioned  for  Rs.896.75 Crores.   Tenders were invited in 12/2005 for this work and awarded to M/s. CR18G-BSCPL(JV), Hyderabad for Rs.884.00 Crores and the agency has executed only 1.68% of the total work.

The estimate for Spillway was technically sanctioned for Rs.748.60 Crores vide CER No.6/2004-05, dated:11.02.2005 and the work was awarded to M/s Madhucon-Sinohydro  (JV)  for  Rs.633.60  Crores.     The  Spillway  work  was executed to an extent of 17.29% of total work.

Due  to  poor  progress  of  Spillway  and  Earth-Cum-Rockfill  Dam,  the contracts for the works of Spillway and Earth-cum-Rockfill Dam were pre-closed on 28.08.2009 with the consent of executing agencies vide Govt. Memo.No.22241/Maj.Irri.1(2)/2009, I&CAD (PW Maj.Irri.1(2) Department, Dated:27.08.2009 and Memo.No.24676/Maj.Irri.1/2009, Dt:23.09.2009.  The pre- closure of  subsisting contracts of  Spillway and Earth-Cum-Rockfill Dam  was ratified vide Govt.Memo.No.22241/ Maj.Irri.1(2)/2009, I&CAD (PW Maj.Irri.1(2) Department, Dt:14.05.2010, and it was directed to proceed with the tender process treating all the three components of Indira Sagar Polavaram Project works including Power component as a single unit. Tender notice was issued on

28/08/2009 for the three components of Head works together to fix up single agency and there was no response.


Further   the   Government   vide   Memo.No.26368/Maj   irri1(2)/2010-3, Dt:04-06-2011 have permitted  the  Engineer-in-Chief,  Indira  Sagar Polavaram Project, Dowlaiswaram.  to  call for tenders  of  Indira  Sagar Polavaram,  Head Works i.e., Spillway, Earth cum Rock Fill Dam (3 gaps), Approach channel and spill channels including foundation excavation of foundation of power house only for Power Block i.e. combined work comprising items of work covered under G.O.Ms.No.82, Dt:08.05.08 and G.O.Ms.No.54, Dt:24.03.2005.

 The  Engineer-in-Chief,  Indira  Sagar  Polavaram  Project,  Dowlaiswaram has also reported that the revised estimates of Earth cum Rock fill dam and Spillway are prepared based on the designs and drawings approved by Central Water Commission, New Delhi and the suggestions made by the Designs Expert Committee keeping in view the site conditions and considering the latest SSR i.e. 2011-12 adopting the cement and steel rates for the month of 6/2011.  Further the   Revised   Estimate   proposals   of   Indira   Sagar   Polavaram   Project   for Rs.7372.22 Crore were placed before the Engineer-in-Chief’s Committee, as per Govt. Memo.No.30785/Reforms-A1/2010-1, Dt:16.12.2010.   The Engineer-in- Chief’s Committee met on 20.10.2011 and opined that the increase in cost is mainly due to the change of SSR and increase in quantities based on the design finalized by CWC and the revised estimates for Rs.7372.22 crores are in order subject to certification by project authorities regarding quantities, leads and rates adopted in the finalized revised estimates as detailed below:

Original Administrative Approval             :  Rs.4040.935 Crores (As per the above 2 GO’s)

Present Revised Estimate submitted for

Approval                                                  :  Rs.7372.220 Crores

Excess amount                                        :  Rs.3331.285 Crores

% Excess                                                 :  (+) 82.44 %

Polavaram project  Andhra Telangana 2013

In view of the above circumstances stated by the Engineer-in-Chief, Indira Sagar Polavaram Project, Dowlaiswaram and based on the recommendations of Committee of Engineer-in-Chiefs’, Government after careful examination hereby accord Revised Administrative Approval for the work of “Investigation, Survey, Preparation of designs and drawings and Land Plan schedules etc., (balance) and 1) Construction of Earth Dam gaps–I & III, Earth-cum-Rock Fill Dam for Gap–II, Spill Channel, Approach Channel and Pilot Channel 2) Construction of Spillway with crest level +25.72 and its ancillary works including R/s and L/s connectivities and 3) Excavation of foundations of 960MW Hydro Electric Power House, Approach Channel, Intake Structure, Tail Race Pool, Tail Race Channel etc.,  and  balance  Power  Plant  civil  works  &  Power  Plant  Electrical  and Mechanical equipment  of  Indira  Sagar  Polavaram  Project” for  an  amount  of Rs.7372.22 Crores (Rupees seven thousand three hundred seventy two crores and twenty two lakhs only) vide Annexure enclosed.

The  expenditure  sanctioned  above  shall  be  debited  to  the  Head  of Account “DA 4700 – Capital outlay on Major Irrigation 01 – Major Irrigation – Commercial – MH (120) – Polavaram Barrage ( Indira Sagar Project ).

1.  GH (11) – Normal State Plan – SH (26) D&A works.

2.  GH (11) – Normal State Plan –SH (51) TSP

3.  GH (11)  – Normal State Plan – SH(50) SCP

4.  GH (21)  – AIBP – SH (26) D&A works

5.  GH (21)  – AIBP – SH (51) TSP

6.  GH (21)  – AIBP – SH (50) SCP”

The   Engineer-in-Chief,   Indira   Sagar   Project   shall   take   necessary   action accordingly.

This order issues with the concurrence of the Finance (W&P) Department vide their U.O.No.239/F7(A1)/12-1, Dated.02-03-2012.


(Rupees in Crores)



Amount as per Revised

Estimate now approved

1.SPILLWAY Preiliminaries 4.500
  Works 1955.630
  Land 2.025
  Buildings 14.160
  Communications 6.300
  Plantation 1.000
  Miscellaneous 0.200
  Total 1983.815
  Right side and Left side


  Total 2498.700
2.Earth Cum

Rock Fill Dam





  Works 2896.450
  Land 11.500
  Buildings 5.440
  Communications 7.000
  Plantation 1.000
  Miscellaneous 17.960
  Total 2952.490
  Hydro Electric Power House

including Power Plant Civil works, Power Plant E&M Equipment

  Total 4873.520
  GRAND TOTAL (1 + 2) 7372.220


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