The chief ministers of Telangana and Maharashtra states reached an agreement in 2016 to limit the full reservoir level (FRL) of the barrage at 148 m msl with 1.85 tmcft storage capacity.
17,000-crore mega project of Pranahita-Chevella at Delhi in the presence of Chief Ministers of both States opened a new chapter with regard to utilisation of water in the Godavari basin.
[8] Andhra Pradesh has so far spent Rs 1,600 crore on various packages of the project, which was designed by a group of engineers to use 160 Tmcft of Pranahita water and serve 16.4 lakh acres in the water scarcity areas of Adilabad, Karimnagar, Warangal, Nizamabad, Medak, Nalgonda and Ranga Reddy districts.
The water from this barrage will be transferred into the reservoir of the Yellampalli project already constructed across the Godavari, before being released to the intended areas, including Hyderabad city (30 tmcft) for drinking purpose.
Earlier in the Babli barrage dispute, Maharashtra claimed that it has right to use the water available in the Sriram Sagar reservoir as per the agreement dated 06.10.1975 of Godavari Water Disputes Tribunal and Supreme Court upheld the claim of Maharashtra[10] Pranahita-Chevella is the costliest of Jalayagnam projects requiring 3,466 MW of power & annual electricity of 7.5 billion KWhr with 530 meters average pumping head.
Initially, a weir would be constructed across the Indravati river where its bed level is at 170 m msl to divert its water by gravity canal with tunnels to reach Thammidihatti pond.
Once Bhopalpattanam dam is constructed, it would also ensure water transfer throughout the year by Indravati to Pranahita link canal in addition to hydro electricity generation.