Rs 1,000 crore would be spent in the first phase. The loan amount for the second phase will be provided in April.
Additional Chief Engineer (Water Resources) Ravi Solanki said that restructuring and repair of canals built under the Indira Gandhi Canal Project will be carried out. It will curb water losses and water locking problems so that farmers get ample water for irrigation.
Solanki said the project will be completed in five years.
The project will solve drinking and irrigation water woes of 10 districts of the desert state -- Sriganganagar, Hanumangarh, Churu, Nagaur, Bikaner, Jodhpur, Jaisalmer, Sikar, Jhunjhunu and Barmer.
A flood management system for Ravi, Beas, Sutlej and Ghaggar rivers will also be developed under the project, Solanki added.
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