Six northern states on Friday signed a MoU to construct a Rs 4,596.76 crore dam in Uttarakhand that will provide water to the national capital and other beneficiary states.
The dam, named Renukaji, a multipurpose project, will be built on Giri river in the upper Yamuna basin.
The project will also generate 40 MW of power during peak flow and is proposed to be executed by state-run Himachal Pradesh Power Corp Ltd (HPPCL).
Since 90 per cent cost of the power component is being borne by Delhi, Himachal Pradesh would get about 200 million units of electricity at Rs 0.30 per unit, an official statement quoting Himachal Chief Minister Jai Ram Thakur said.
The dam would generate net revenue of Rs 60 crore per annum to the HPPCL and Rs 12 crore to the state government in its first year of operation.
The revenue would further increase over a period of time.
Thakur said with the flow of investment of more than Rs 5,000 crore, the state's economy would get a boost.
The project will provide 0.498 billion cubic metre of storage in its reservoir and a firm water supply to the tune of 23 cumecs to Delhi.
The 90 per cent cost of irrigation and drinking water component of the project i.e. Rs 3,892.83 crore will be provided by the Central government and rest 10 per cent by the six states.
Water from the Renuka dam in Sirmaur district of Himachal Pradesh will be released into the Yamuna river, from where it will flow to Haryana's Hathinikund barrage and finally reach Delhi.
The project had hit roadblocks repeatedly since an agreement was signed in 1994 that water from the Renuka dam would be supplied to Delhi.
The national status project is located some 250 km from Delhi.
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