Gosikhurd project faces fourth cost escalation and extended delays
Nagpur: The state government has approved yet another
cost escalation
of over ₹7,400 crore for the long-delayed Gosikhurd
irrigation project
, pushing the total estimated cost to a staggering ₹25,972 crore. The latest revision marks a 6880% increase from the initial approved cost, highlighting the project's troubled legacy of delays, redesigns, and controversies.
Launched with much fanfare, the
Gosikhurd project
— also known as Indirasagar, after former Prime Minister Indira Gandhi — had its foundation stone laid by then Prime Minister Rajiv Gandhi in 1983. At the time, the estimated cost was just ₹372 crore. Over the last four decades, however, the project has become symbolic of bureaucratic inertia and repeated cost overruns.
So far, the state government has spent over ₹18,300 crore on the project, which was envisioned to eliminate irrigation backlogs in Vidarbha. The project is being executed by the
Vidarbha Irrigation Development Corporation
(VIDC). On Tuesday, the state cabinet approved the revised estimate, allowing the Vidarbha Irrigation Development Corporation (VIDC) to proceed with unfinished works.
This marks the fourth official cost escalation in the project's history. A major revision in 2007 had raised the estimated cost from ₹5,600 crore to ₹18,494 crore. Protests by Project Affected Persons (PAPs) also contributed to the cost revision in the past, as demands for higher compensation were taken into account.
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Officials said the cost increase is not merely due to inflation or delay, but also due to additions in the project's scope. Four new lift irrigation schemes have been incorporated to bring more farmland under irrigation. Funds will also be used for building canals, barrages, pipe distribution networks, and increasing the reservoir height. Additionally, over ₹1,500 crore has been earmarked for land acquisition in newly added areas.
Despite repeated promises, the project continues to lag behind schedule. According to sources in the state's irrigation department, the project is now expected to be completed by 2027, and the latest cost revision is likely to be the final one. Formal approval for the additional expenditure had been pending for over a year.
Sources indicated that even without the addition of new works, the project was unlikely to be completed by the earlier target of March 2025. A delay in forest clearances and a lack of funding during certain years, particularly post-2011, further hampered progress.
Often referred to as the "Bhakra Nangal of Vidarbha," the Gosikhurd project is designed to irrigate 2.59 lakh hectares of farmland. However, water currently reaches only 1.13 lakh hectares. While infrastructure has been developed to irrigate up to 1.96 lakh hectares, last-mile connectivity remains incomplete for the remaining areas.
The project has also been the subject of political controversy and investigations. In earlier years, the Anti-Corruption Bureau (ACB) launched probes into alleged irregularities, with opposition parties targeting the then irrigation minister Ajit Pawar, who was part of the undivided Nationalist Congress Party (NCP). Political dynamics have since shifted, but public scrutiny remains intense.
Independent irrigation expert Pravin Mahajan welcomed the prompt approval, saying the revised budget will finally allow the project to reach its full potential.
Please take as inset
Original cost of dam: Rs 372 crore in 1983
Final approved cost: Rs 25,972 crore
This is the fourth escalation
Earlier cost was fixed at Rs 18,949 crore
Out of this, Rs 18,300 crore has been spent
Additional Rs 7,400 crore will be needed for new additions, completing old work, and land acquisition
Dam located at Bhandara will cover Nagpur and Chandrapur districts too**
Total area to be irrigated:2.59 lakh hectares
Area covered so far: 1.13 lakh hectares.
Over 90% of funds will come from state.
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