The government has set aside Rs. 35B (US$868M) for the modernisation project and the bank will extend an additional Rs. 22.5B (US$558M) to help finance the work. The modernisation works aim to increase the area irrigated by water from the dam by 161,880 ha. An estimated Rs. 360M (US$8.9M) has already been spent on temporary repairs to the Nagarjunasagar Left and Right canals.

It is expected to take some time for the bank to finalise and approve the loan but the bank has informed the Indian government that work on the project can start now and the amount spent will be reimbursed at a later date.