In a bid to improve water management and reduce recurring floods, the Telangana government has taken up the Munneru–Palair gravity link scheme, Irrigation Minister N Uttam Kumar Reddy stated on 18 January, 2026.

The project aims to divert surplus floodwater that annually inundates Khammam district and otherwise drains into the sea. With an estimated cost of Rs 162.54 crore, the scheme is expected to save nearly Rs 120 crore each year by reducing dependence on pumping under the Sitarama lift irrigation scheme. Water will be redirected from the Munneru check dam at Mulkanoor through a 9.6-km link canal designed to carry 4,500 cusecs.

The project is expected to stabilise 1.38 lakh acres under the Nagarjunasagar Project left canal and secure another 40,000 acres upstream. It will also ensure drinking water supply to Khammam, Mahbubabad and Suryapet districts while supporting hydel power generation at Palair. Calling it cost-effective, the Minister said, “This multi-purpose scheme will yield maximum results at minimum expenditure,” earlier this year.