Centre accepts Punjab CM's request to reduce state's share in Shahpur dam project

The Central Government has agreed to enhancing its share in the Shahpur Kandi Dam project on river Ravi from 60 to 86 per cent, thus conceding Chief Minister Captain Amarinder Singh's request to reduce Punjab's contribution to only 14 per cent.

The revision of the Centre:State ratio in the national project by the Union Ministry of Water Resources, River Development and Ganga Rejuvenation has paved the way for augmenting the state's irrigation potential manifold, said the Chief Minister, after receiving a letter from the Ministry to this effect.

The Chief Minister thanked the Centre for conceding his request to facilitate the state to cope with the ever increasing demand for canal irrigation. The move, he said, would help the state save nearly Rs. 150 crore

As per the letter received from the central ministry, the estimated cost of the Shahpur Kandi project was Rs. 2715.70 crore, of which the irrigation component (28.61 percent of approved cost) and power component (71.39 percent of approved cost) amounted to Rs. 776.96 crore and Rs. 1938.74 crores respectively. The approved central assistance of Rs. 485.38 crore would be provided for the balance works portion of the irrigation component of the said project amounting to Rs. 564.63 crore.

The entire state share of the irrigation component, the total cost of the power component and the establishment cost of the project would be borne by the Government of Punjab, according to an official spokesperson.

The spokesperson said the completion of the main dam balance portion of Ravi Canal and siphon for Kashmir canal would be completed by 2021. The entire project would be completed by June 2022.

Funding for Central Assistance to the Implementation of Shahpurkandi Dam (National Project) on River Ravi in Punjab State would be made through NABARD under the existing system for funding of 99 Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-Accelerated Irrigation Benefit Programme (AIBP) project, under Long Term Irrigation Fund (LTIF), as per the same terms and conditions.

The project would be implemented by the Punjab Government from December 2018 to June 2022.

In addition to the existing monitoring mechanism for project Central Water Commission, a committee headed by Member, Central Water Commission, and consisting of the concerned Chief Engineers of Punjab and J&K and other concerned officers will be constituted to monitor the implementation of the project and ensure its construction as per the agreement between the two states.