Cabinet Approves Implementation of Shahpurkandi Dam (National Project) on River Ravi in Punjab (Download PDF)


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Union Cabinet has approved implementation of Shahpurkandi Dam Project on river Ravi in Punjab. It has approved central assistance of Rs. 485.38 cr. (for irrigation component) over 5 years period from 2019 to 2023.

Image of Ravi River

Image of Ravi River

Image of Ravi River

Image of Cabinet Approves Implementation of Shahpurkandi Dam

Image of Cabinet Approves Implementation of Shahpurkandi Dam

Image of Cabinet Approves Implementation of Shahpurkandi Dam

Project will be implemented by Punjab Govt. w/central assistance. It will be completed by June 2022.

Funding of Shahpurkandi Dam Project

  • Total cost of this project is Rs. 1973.53 cr. (Irrigation component: 564.63 cr. , Power component: 1408.90 cr. )

  • Out of this, Rs. 485.38 cr. would be provided as Central Assistance.

  • Funding for central assistance will be made thru National Bank for Agriculture & Rural Development (NABARD) under existing system for funding of 99 Pradhan Mantri Krishi Sinchayee Yojana- Accelerated Irrigation Benefit Programme (PMKSY-AIBP) projects under Long Term Irrigation Fund (LTIF).

Significance of Shahpurkandi Dam Project

  • This project will help minimizing some of water of River Ravi which at present is going waste thru Madhopur Headwork downstream to Pakistan.

  • It will create irrigation potential of 5,000 hectares in Punjab & 32,173 hectares in J&K on completion.

  • Besides, Punjab will be able to generate 206 MW of hydropower.

Background of Shahpurkandi Dam Project

  • Indus Waters Treaty was signed b/w India & Pakistan in 1960 for sharing of Indus waters.

  • According to this treaty, India got full rights for utilization of waters of 3 eastern rivers namely Ravi, Beas & Satluj.

  • Bilateral agreement was signed b/w Punjab & J&K in January 1979 for construction of RanjitSagar Dam (Thein Dam) & Shahpurkandi Dam by Punjab Govt.

  • RanjitSagar Dam was commissioned in August 2000.

  • ShahpurKandi Dam project was proposed on River Ravi.

  • Project was initially approved by erstwhile Planning Commission in November 2001 & was included under AIBP for funding its irrigation component.

  • Works could not progress much due to non-availability of funds on part of Punjab Govt. for power component & later interstate issues w/J&K.

  • Series of meetings were held bilaterally b/w both states as well as at Central Govt. level.

  • Finally, agreement was reached b/w both states under aegis of Ministry of Water Resources in September, 2018.

- Published/Last Modified on: January 2, 2019

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