In a big boost to Telangana’s Kaleshwaram lift irrigation project, Punjab National Bank (PNB) has agreed to extend its term loan of Rs 11,400 crore.

The project is estimated to entail an investment of over Rs 80,500 crore, for which the state government has floated the SPV, Kaleshwaram Irrigation Project Corporation (KIPCL).

The project has already received Rs 10,000 crore for acquisition of land. The state government has allotted Rs 7,000 crore in its current budget. It has entered into an agreement for Rs 7,400 crore loan from a consortium of banks led by Andhra Bank.

The finance from PNB will be used for construction of the second phase that includes Ellampally to Mallanna Sagar to Konda Pochamma Sagar which comprises packages 6 to 14 costing over Rs 30,000 crore.

The state government is also trying to rope in National Bank for Agriculture and Rural Development (NABARD). Irrigation Minster T Harish Rao has sought Rs 7,900 crore finance for the project.