The project, which is likely to be completed in a year, will also cater to drinking water needs of Rayalaseema region and other districts.
The chief minister assured people of East and West Godavari districts that injustice will not be done to them.
Brushing aside the criticism by opposition YSR Congress Party (YSRCP), the chief minister went ahead with the project.
The budget session of the state assembly that concluded last week had witnessed bitter exchange between the ruling Telugu Desam Party (TDP) and YSRCP over Pattiseema.
Leader of the Opposition Y.S. Jaganmohan Reddy had accused the government of favouring the contractor by including tailor-made requirements in the Pattiseema tender and allowing excess amount of Rs.286 crore to be quoted on the price offered in violation of rules.
The opposition said only two companies responded to the tender which put the conditionality of completing the works in one year.
“How can the government allow 16.9 percent excess as bonus when the state is facing a financial crisis,” Jaganmohan Reddy had asked.
The TDP government rejected the allegations and pointed out that the bonus will be paid only if the project is completed within a year.
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