covers nearly 80% of the total catchment’s area with adequate water inflows. This is one of very few sites for locating huge storage reservoir in India similar to Aswan Dam (4,600 tmc) in Egypt, Lake Volta (4,200 tmc) in Ghana and Three Gorges Dam (1,350 tmc) in China. Inchampalli reservoir with FRL 125 m MSL would incur very low cost per tmc water storage after meeting the land acquisition and rehabilitation costs at prevailing market rates. Creation of 1,000 tmc storage reservoir at Inchampalli on Godavari River would harness the mighty river water fully ushering India into next phase of green revolution. This reservoir project would also eliminate fully the frequent floods taking place in lower Godavari river basin area in Telangana and Andhra Pradesh. However, the erstwhile Andhra Pradesh government had tentatively proposed the FRL level 112.77 m MSL, fearing some coal deposits would be submerged above this level. The delay in taking up this project is boon in disguise to Telangana state. Presently underground coal gasification technology is very well developed and in commercial use. This technology is used to exploit coal deposits located deep in the underground (600 meters depth & more), the abandoned underground coal mines and also coal deposits located in seabed. The latest technology adopted from oil & gas wells drilling such as serpentine drilling / in seam drilling, guided drilling, bunching of wells, etc. has made in situ coal gasification technology a reliable and commercial proposition. With underground coal gasification technology, the coal deposits (if any), which got submerged under the reservoir water, can be exploited economically. 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. 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. Later the height of the dam can be gradually increased to its ultimate height at FRL 125 m MSL with the revenue generated from hydro power generation. Alternatively, Kanthanapally ( ) 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