The Telangana government has given administrative approval to resume the Srisailam Left Bank Canal (SLBC) Tunnel project, declaring it a top priority.

On 08 August, 2025, Rs 2.36 crore was sanctioned for a helicopter-borne VTEM Plus Magnetic Geophysical Survey to aid in the design and execution of Tunnel I and II, including the head regulator, under the AMR Project in Nagarkurnool and Nalgonda districts. The National Geophysical Research Institute (NGRI) will conduct the survey on a nomination basis, supported by the Geological Survey of India (GSI) and an aerial LiDAR survey.

Irrigation Minister N Uttam Kumar Reddy said the work is resuming based on expert committee recommendations. The incomplete nine-km stretch has prevented water from being drawn by gravity from the Srisailam reservoir, incurring annual power costs of Rs 750 crore and affecting tribal and fluoride-hit areas. The survey aims to detect structural weaknesses up to 1 km underground. Tunnelling operations covering 10 km will restart immediately, with completion targeted within the approved budget.