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Union Cabinet approves implementation of Shahpurkandi Dam

Published on December 11, 2018
Union Cabinet has approved implementation of Shahpurkandi Dam Project on river Ravi in Punjab.
Union Cabinet approves implementation of Shahpurkandi Dam
  • It has also approved central assistance of Rs. 485.38 crore (for irrigation component) over a five years period from 2019 to 2023.
  • The project will be implemented by Punjab Government with central assistance.
  • It will be completed by June 2022.

Funding of the Project:

  • The total cost of this project is Rs. 1973.53 crore (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 through National Bank for Agriculture and Rural Development (NABARD) under the 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 this Project:

  • This project will help minimizing some of water of River Ravi which at present is going waste through Madhopur Headworks downstream to Pakistan.
  • It will create an irrigation potential of 5,000 hectares in Punjab and 32,173 hectares in Jammu & Kashmir on completion. 
  • Besides, Punjab will be able to generate 206 MW of hydropower.

Other Details:

  • Indus Waters Treaty was signed between India and Pakistan in 1960 for sharing of Indus waters.
  • According to this treaty, India got the full rights for utilization of waters of three eastern rivers namely Ravi, Beas and Satluj.
  • Bilateral agreement was signed between Punjab and J&K in January 1979 for construction of RanjitSagar Dam (Thein Dam) and Shahpurkandi Dam by Punjab Government. 
  • RanjitSagar Dam was commissioned in August 2000.
  • ShahpurKandi Dam project was proposed on River Ravi.
  • The Project was initially approved by erstwhile Planning Commission in November 2001 and was included under AIBP for funding its irrigation component.
  • However, works could not progress much due to non-availability of funds on part of Punjab Government for power component and later interstate issues with J & K.
  • Series of meetings were held bilaterally between both states as well as at Central Government level.
  • Finally, an agreement was reached between both states under aegis of Ministry of Water Resources in September, 2018.


Q. Union Cabinet has approved implementation of Shahpurkandi Dam Project on which river in Punjab?
a. Beas
b. Ravi
c. Sutluj
d. None of the above

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