The Kalasa-Bandura Nala project is a project undertaken by the Government of Karnataka to improve drinking water supply to the twin cities of Hubballi-Dharwad and the districts of Belgaum and Gadag. It involves building barrages across Kalasa and Banduri, two tributaries of the Mahadayi river to divert 7.56 TMC of water to the Malaprabha river which supplies the drinking water needs of the twin cities.
This project had been on paper for decades and finally the Karnataka government decided to implement it during S M Krishna's regime. Clearance for the project was received from the centre in 2002. The project however, soon ran into trouble when the then Bharatiya Janata Party (BJP) government of Goa headed by Manohar Parrikar raised objections to the project claiming that the project would harm its own flora and fauna. Following this, the then National Democratic Front (NDF) government which was in power at the center put on hold its approval and funding of the project.
Karnataka and Goa have since then been at loggerheads over the project. The project which had been put in abeyance for four years was revived after H. D. Kumaraswamy became the Chief Minister. In September 2006, the coalition government in Karnataka headed by Chief Minister H. D. Kumaraswamy, decided to go ahead with the construction work. It was inaugurated on September 22 at Kanakumbi in Khanapur Taluk of Belgaum District. The Goa government, however soon moved the courts and brought a stay on the construction work. The matter is now in the Supreme Court of India.