Kaleshwaram barrages turn into major revenue source through sand auctions

Hyderabad: Three key barrages of the Kaleshwaram Lift Irrigation Project—Medigadda, Annaram, and Sundilla—though not currently used for water storage, have become a significant revenue source for the Telangana govt. Vast sand reserves along the Godavari river, especially near these barrages, are helping the cash-strapped state generate substantial income.
The Telangana State Mineral Development Corporation (TSMDC) recently auctioned 6.97 million tonnes (MT) of sand near the Annaram barrage in Jayashankar Bhupalpally district. Officials are also in the process of identifying additional sand reaches between the Annaram and Sundilla barrages.
Last year, the govt auctioned around 90 lakh MT of sand in the Medigadda barrage area, earning crores in revenue. Godavari sand is in high demand—particularly in Mulugu, Bhupalpally, and Bhadradri Kothagudem districts—because of its fine texture and superior quality. Authorities reported an overwhelming response to bids at Medigadda earlier, and now similar enthusiasm is being seen for Annaram.
"Out of the 14 identified reaches, two in Medigadda have been operational, and the rest are being opened now. Typically, sand reaches function during the winter and summer seasons," a senior TSMDC official told TOI. While the TSMDC earns about ₹375 per tonne, contractors sell it at three to four times the price, accounting for excavation and transportation costs.
The state govt has set an ambitious target of ₹1,000 crore in revenue through sand auctions along the Godavari belt. In 2023–24, sand auctions generated ₹673 crore, which increased to ₹748 crore in 2024–25.
To boost revenues further, district collectors have been directed to identify additional viable sand reaches. Fresh tenders are expected to be floated by the end of this month.