The Cabinet Committee on Economic Affairs Chaired by Prime Minister Shri Narendra Modi, has given its approval to a proposal of Department of Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti to complete the balance works of North Koel Reservoir Project at a revised Cost of Rs. 2,430.76 crore (central share: Rs.1,836.41 crore) as against the balance cost of Rs.1,622.27 crore (central share: Rs.1,378.60 crore) approved earlier in August, 2017.

On completion of the balance works, project would provide additional annual irrigation to 42,301 ha in the four drought prone districts of Jharkhand and Bihar.

North Koel Reservoir Project is an inter-State major irrigation project with command area lying in the two States of Bihar and Jharkhand. The project comprises a dam on North Koel river near Kutku village (District Latehar, Jharkhand), a barrage 96 km downstream of the dam (at Mohammadganj, District Palamu, Jharkhand), Right Main Canal (RMC) and Left Main Canal (LMC) taking off from the barrage. The Construction of dam and ancillary activities started in the year 1972 by Govt. of Bihar from its own resources. The work continued till 1993 and was stopped in that year by the Forest Department, Govt. of Bihar. Due to apprehension that water accumulated in the dam would threaten the Betla National Park and Palamu Tiger Reserve, the work on dam was at a standstill. The project subsequent to stoppage of work was providing annual irrigation to 71,720 hectares. After bifurcation of Bihar in November 2000, the head works i.e. Dam and Barrage lie in Jharkhand. Also the entire 11.89 km Left Main Canal (LMC) from Mohammadganj barrage lies in Jharkhand. However, out of 110.44 km of Right Main Canal (RMC), first 31.40 km lies in Jharkhand and the remaining 79.04 km lies in Bihar. In the year 2016, the Govt. of India decided to provide assistance for completion of balance works of the North Koel Reservoir Project in order to operationalise the project to realise the envisaged benefits. It was decided to reduce the reservoir level so as to save the core area of Palamu Tiger Reserve. The proposal to complete the balance works of the Project at an estimated expenditure of Rs.1622.27 crore was approved by Union Cabinet in August 2017.

Subsequently, at the request of both State Governments, certain other components were found necessary to be included in the project. Complete lining of RMC and LMC was also regarded essential from technical considerations to derive envisaged irrigation potential. Thus, the works of Gaya distribution system, lining of RMC and LMC, remodeling of enroute structures, construction of a few new structures and one time Special Package for R&R of Project Affected Families (PAFs) were to be provided for in the updated cost estimate. Accordingly, Revised Cost Estimate of the project was prepared. Out of the cost of balance works of Rs.2430.76 crore, the Central would provide Rs.1836.41 crore.

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DS/SKS