Why in News?

• Union Cabinet has approved implementation of Shahpurkandi Dam Project on river Ravi in Punjab.
• The project will be implemented by Punjab Government with central assistance of Rs. 485.38 crore (for irrigation component) over a five years period from 2019 to 2023.
• It will be completed by June 2022.
• Funding for central assistance will be made through National Bank for Agriculture and Rural Development (NABARD) under the existing system for funding of 99 Pradhan Mantri Krishi Sinchayee Yojana- Accelerated Irrigation Benefit Programme (PMKSY-AIBP) projects under Long Term Irrigation Fund (LTIF).

Significance of this Project:

• ShahpurKandi Dam project was proposed on River Ravi.
• This project will help minimizing some of water of River Ravi which at present is going waste through Madhopur Headworks downstream to Pakistan.
• It will create an irrigation potential of 5,000 hectares in Punjab and 32,173 hectares in Jammu & Kashmir on completion.
• Besides, Punjab will be able to generate 206 MW of hydropower.

Indus Waters Treaty:

• Indus Waters Treaty was signed between India and Pakistan in 1960 for sharing of Indus waters. According to this treaty, India got the full rights for utilization of waters of three eastern rivers namely Ravi, Beas and Satluj.
• Bilateral agreement was signed between Punjab and J&K in January 1979 for construction of RanjitSagar Dam (Thein Dam) and Shahpurkandi Dam by Punjab Government.
• RanjitSagar Dam was commissioned in August 2000.