The Union Cabinet on Thursday approved implementation of Shahpur Kandi Dam project on Ravi in Punjab that will help use some of river water which is going a waste through the Madhopur Headworks downstream to Pakistan.

Facts :

• Union Cabinet has approved implementation of Shahpurkandi Dam Project on river Ravi in Punjab which has been declared a national project.
• It also has approved central assistance of Rs. 485.38 crore (for irrigation component) over five years period from 2019 to 2023.
• The project will be implemented by Punjab Government with central assistance.
• 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 existing system for funding of 99 Pradhan Mantri Krishi Sinchayee Yojana- Accelerated Irrigation Benefit Programme (PMKSY-AIBP) projects under Long Term Irrigation Fund (LTIF).
• In addition to existing monitoring mechanism for projects by Central Water Commission, a committee headed by Member, Central Water Commission and consisting of concerned Chief Engineers of Punjab and J&K and other concerned officers would be constituted to oversee/monitor the implementation of project.
• The Advisory committee of MoWR, RD&GR on Irrigation, Flood Control and Multipurpose Projects accepted the second Revised Cost Estimate amounting to Rs 2715.70 crore (February, 2018 Price Level) in its 138th meeting held on 31.10.2018.
• The project would be completed by June 2022. Pertinently, J&K and Punjab Government signed an MoU on 8 September this year for the implementation of the project, which was hanging fire for almost 4 decades.

Significance :

• This project will help minimising some of water of River Ravi which at present is going waste through Madhopur Headworks downstream to Pakistan.
• It will create 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.

Background :

• 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, agreement was reached between both states under aegis of Ministry of Water Resources in September, 2018.