The Union Cabinet chaired by Prime Minister Narendra Modi last evening approved implementation of Shahpur Kandi Dam Project on river Ravi, which has been declared a national project.
The Cabinet also approved Central Assistance of Rs 485.38 cr for the project to be provided over next five years.
On completion of the project an Irrigation Potential of 5,000 ha in Punjab State and 32,173 ha in J&K State would be created.
Funding for Central Assistance to Shahpur Kandi Dam project shall be made through NABARD under existing system for funding of 99 PMKSY-AIBP projects under 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.