Economic viability is causing concerns over the future of the 6x150MW Srisailam Hydropower project in Southern India. The project, located on the banks of the Krishna River, is 250m below surface and has involved the construction of a 10km headrace tunnel and the excavation of 2.5Mm3 of rock. But a recent report by the country’s Controller and Auditor General said that a huge escalation in costs had occurred from US$85M to a staggering US$700M, including nearly US$150M in interest to date. Defending the project, Mr J. Parthasarathy, Chairman of APGenco, the client, said that the original cost was not based on an adequate investigation and that there had been no funds tied up and no project lay-out. Also the exchange rate had plumetted since the project was implemented.
