The Kalasa-Banduri Nala is a project undertaken by the Government of Karnataka to improve drinking water supply to the Districts of Belagavi, Bagalkot, Dharwad and Gadag.
Following this, the then National Democratic Alliance (NDA) government which was in power at the center put on hold its approval and funding of the project.
In September 2006, the coalition government in Karnataka headed by Chief Minister H. D. Kumaraswamy decided to go ahead with the construction work.
GV Srirama Reddy said "The present imbroglio on the projects to the long pursued politics between the Congress and the BJP in Karnataka and Goa."
Srirama Reddy was critical of Prime Minister Narendra Modi for throwing the ball in the courts of Congress instead of taking a lead to resolve the dispute: "It is unbecoming of a Prime Minister to take a political stand based on his political differences with Congress on an issue concerning people.