This project is also envisaged with Pumped-storage hydroelectricity features with tail pond downstream of the dam.

[4] As per the interstate agreement for Inchampalli joint project, Andhra Pradesh (now Telangana) shall bear 78.1% cost of the dam, land & asset acquisition (including that of Maharashtra and Chhattisgarh governments) and rehabilitate the displaced population.

The river at this point covers nearly 80% of the total catchment’s area[6] with adequate water inflows.

[7] This reservoir project would also eliminate fully the frequent floods taking place in lower Godavari river basin area in Telangana and Andhra Pradesh.

Moreover, coal deposits are losing importance as this highly pollution causing energy source has become costly compared to abundant and pollution free renewable energy sources such as wind power and solar power in India.

[9] It would be an economical and time saving proposition if this project is constructed by Telangana first up to 95 m MSL with its full capacity hydro electric station and its submergence area limited to river bed in Maharashtra and Chattishgarh states.

Alternatively, Kanthanapally ( 18°27′35″N 80°24′57″E / 18.45972°N 80.41583°E / 18.45972; 80.41583 (Kanthanapally barrage) ) hydro electric project across the Godavari river located downstream of Inchampalli dam can be constructed up to FRL 95 m MSL with provision to construct Inchampalli dam up to FRL 125 m MSL in future.

At this location, the dam construction cost (nearly Rs 3000 crores) up to FRL 125 m MSL is less than 10% of the total project cost which includes land acquisition & rehabilitation of displaced people in the submergence area, irrigation canals, water pumping stations, hydro power station, etc.