An environment ministry panel has returned Andhra Pradesh's ₹82,000 crore Polavaram-Banakacharla Link project proposal, directing the state to first consult the Central Water Commission on Godavari river water diversion plans.

The Expert Appraisal Committee cited ongoing disputes with Odisha and Chhattisgarh over the Polavaram project's environmental clearance, plus allegations that the scheme violates the 1980 Godavari Water Disputes Tribunal Award.

The project aims to divert 200TMC of floodwater to drought-prone Rayalaseema, providing drinking water to 80 lakh people and irrigating 3 lakh hectares. However, Telangana opposes the project, arguing it would deprive the state of its rightful Godavari water share and violates the AP Reorganisation Act requiring mutual consent for new projects.