The Cabinet Committee on Economic Affairs (CCEA) approved a proposal by the Jal Shakti Ministry to increase its share of funding for the under-construction North Koel Reservoir, an inter-State irrigation project spanning Bihar and Jharkhand. The Centre committed to contribute ₹1,836 crore against the ₹1,378 crore approved in 2017. This increases the project’s total cost from ₹1,622 crore in 2017 to ₹2,430 crore at present.
On completion, the project would provide additional annual irrigation to 42,301 hectares in the four drought-prone districts of Jharkhand and Bihar. The project comprises a dam on North Koel river near Kutku village Latehar district, Jharkhand), a barrage 96 km downstream of the dam (at Mohammadganj, Palamu district, Jharkhand), a Right Main Canal and Left Main Canal, taking off from the barrage.
The Bihar government began work on the dam in 1972 from its own resources. The work continued till 1993 when it was stopped by the State Forest Department over concerns that it threatened the Betla National Park and Palamu Tiger Reserve.
The project, before it stalled, was providing annual irrigation to 71,720 hectares. In 2016, the Centre decided to complete the project and as a compromise, reduce the reservoir level to save the core area of Palamu Tiger Reserve.
