This is a interstate project of Andhra Pradesh and Maharastra states, and is located at Gojegoan (vg.), Mukhed (Tq), Nanded District of Maharastra state. As per the interstate agreement, the water and expenditure is to be shared in the ratio of 38:62 by Andhra Pradesh and Maharastra states respectively. Out of 6.36 TMC of water, 2.43 TMC water is to be shared by the Andhra Pradesh and remaining 3.93 TMC by the Maharastra. Accordingly an amount of Rs.117.86 Crores and Rs.157.97 Crores shall be shared by Andhra Pradesh and Maharastra respectively. The potential creation of ayacut is 22,000 Acres in 31 villages of Madnoor and Bichkunda Mandals in Nizamabad District.

                 An amount of Rs.49.52 Crores have already been released by the Government of Andhra Pradesh to Maharastra, and interstate agreement is concluded by both the Chief Ministers of Andhra Pradesh and Maharastra on 18-11-2003.

PRESENT STATUS:  The Head works are being taken up by the Maharastra state and the expenditure incurred by Maharastra State up to 5/2006 is Rs.100.53 Crores, out of which Rs. 49.52 Crores have been paid by the Andhra Pradesh Government. Canal works in Andhra Pradesh have to be taken up by this state. The total length of right bank canal in Andhra Pradesh is 25.14 Kms.

The 3rd standing committee was held on Dt:13-11-2006 at Hyderabad to discuss the programme and progress of project. The Government have accorded administrative approval to the revised estimate for Rs.209.67 Crores vide G.O.Ms.No.213 dt:25-11-2006. Tender for taking up the right bank canal with Distributaries Sub-distributaries, Field channels including construction of CD and CM works and CC lining to this project have been called for under EPC Turnkey basis under category II. After finalization of tenders, the work will be grounded.