5-Jan-2019: PM lays foundation Stone for North Koel (Mandal Dam) project

The Prime Minister, Shri Narendra Modi laid the Foundation Stone for the revival of North Koel (Mandal Dam) project, Kanhar Sone pipeline irrigation scheme, and strengthening of various irrigation systems and lining works. These projects are cumulatively worth over 3500 crore rupees.

Addressing the gathering the Prime Minister said that these projects are a key part of the Government's effort to raise farmers' incomes, by lowering the cost of irrigation.

The Prime Minister pointed out that the North Koel (Mandal Dam) project has remained incomplete for nearly 47 years. He said this amounts to criminal negligence towards the farmers of this area. He reiterated his commitment to make an honest effort to solve the problems faced by farmers. He said 99 big irrigation projects, which have been stalled for decades, are now being fast tracked, at a cost of almost 90,000 crore rupees. He said that the Union Government is working firmly with the vision of treating farmers as "Annadaata." The Prime Minister said that the Government is working with a new vision for agriculture and farmers, by trying to fundamentally solve problems associated with agriculture.

12-Jan-2018: Water Resources Ministry Signs MoU with Bihar and Jharkhand for Completion of North Koel Reservoir Project

A Memorandum of Understanding has been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India, State of Bihar and State of Jharkhand for completion of balance works of North Koel reservoir project at an estimated cost of Rs. 1622.27 crore.

A supplementary Memorandum of Agreement has also been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India, National Water Development Agency, NABARD with State Governments of Bihar and Jharkhand for funding of the state share under Long Term Irrigation Fund (LTIF) for North Koel reservoir project.

The construction of North Koel project was started in 1972 but was later halted in 1993. The project situated on North Koel river, a tributary of Sone river will provide irrigation to 1,11,521 hectares of land annually in the most backward and drought prone areas of Palamu and Garhwa districts in Jharkhand and Aurangabad  and Gaya districts in Bihar.

Out of the estimated cost of balance works of Rs. 1622.27 crores, the common component amounting to Rs. 1013.11 crores shall be borne by the Govt. of India as a grant from LTIF under Pradhan Mantri Krishi Sinchai Yojana (PMKSY). Out of remaining cost of works amounting to Rs. 609.16 crores pertaining to Bihar and Jharkhand portion, 60% of the cost amounting to Rs. 365.5 crores shall be financed by Central Government from LTIF making the total Central share as Rs 1378.61 crore. Remaining 40% of cost amounting to Rs. 243.66 crores will be borne by the States through the loan financed by NABARD.

The project is scheduled to be completed in 30 months from the start of the project.

5-Jan-2019: PM lays foundation Stone for North Koel (Mandal Dam) project

The Prime Minister, Shri Narendra Modi laid the Foundation Stone for the revival of North Koel (Mandal Dam) project, Kanhar Sone pipeline irrigation scheme, and strengthening of various irrigation systems and lining works. These projects are cumulatively worth over 3500 crore rupees.

Addressing the gathering the Prime Minister said that these projects are a key part of the Government's effort to raise farmers' incomes, by lowering the cost of irrigation.

The Prime Minister pointed out that the North Koel (Mandal Dam) project has remained incomplete for nearly 47 years. He said this amounts to criminal negligence towards the farmers of this area. He reiterated his commitment to make an honest effort to solve the problems faced by farmers. He said 99 big irrigation projects, which have been stalled for decades, are now being fast tracked, at a cost of almost 90,000 crore rupees. He said that the Union Government is working firmly with the vision of treating farmers as "Annadaata." The Prime Minister said that the Government is working with a new vision for agriculture and farmers, by trying to fundamentally solve problems associated with agriculture.

12-Jan-2018: Water Resources Ministry Signs MoU with Bihar and Jharkhand for Completion of North Koel Reservoir Project

A Memorandum of Understanding has been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India, State of Bihar and State of Jharkhand for completion of balance works of North Koel reservoir project at an estimated cost of Rs. 1622.27 crore.

A supplementary Memorandum of Agreement has also been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India, National Water Development Agency, NABARD with State Governments of Bihar and Jharkhand for funding of the state share under Long Term Irrigation Fund (LTIF) for North Koel reservoir project.

The construction of North Koel project was started in 1972 but was later halted in 1993. The project situated on North Koel river, a tributary of Sone river will provide irrigation to 1,11,521 hectares of land annually in the most backward and drought prone areas of Palamu and Garhwa districts in Jharkhand and Aurangabad  and Gaya districts in Bihar.

Out of the estimated cost of balance works of Rs. 1622.27 crores, the common component amounting to Rs. 1013.11 crores shall be borne by the Govt. of India as a grant from LTIF under Pradhan Mantri Krishi Sinchai Yojana (PMKSY). Out of remaining cost of works amounting to Rs. 609.16 crores pertaining to Bihar and Jharkhand portion, 60% of the cost amounting to Rs. 365.5 crores shall be financed by Central Government from LTIF making the total Central share as Rs 1378.61 crore. Remaining 40% of cost amounting to Rs. 243.66 crores will be borne by the States through the loan financed by NABARD.

The project is scheduled to be completed in 30 months from the start of the project.

2017

16-Aug-2017: Cabinet approves completion of balance works of North Koel Reservoir Project

The Union Cabinet has given its approval to the proposal to complete the balance works of the North Koel Reservoir Project in Jharkhand and Bihar at an estimated expenditure of Rs.1622.27 crore to be incurred during three financial years from the start of the project.

The Cabinet also approved storage of water in dam restricted at lower level than envisaged earlier to reduce the submergence and to protect Betla National Park and Palamau Tiger Reserve.

The project is situated on North Koel river which is a tributary of Sone river finally joining the river Ganga.  The North Koel Reservoir is located in the most backward tribal areas in Palamau and Garhwa districts of Jharkhand State. The construction was originally started in the year 1972 and continued till 1993 when it was stopped by the Forest Department, Govt. of Bihar. Since then, the work on dam is at a standstill. The major components of project are: 67.86 m high and 343.33 m long concrete dam called Mandal dam originally intended to  store 1160 million cubic Metre (MCM) water; 819.6 m long barrage at Mohammadganj, 96 km downstream of the dam; and two canals originating from left and right banks of Mohammadganj Barrage with distributaries system for irrigation. With the new lowered elevation level (EL) of 341 Metre, the Mandal dam will now have storage of 190 MCM.  The project aims to provide irrigation to 111,521 hectares of land annually in the most backward and drought prone areas of Palamau & Garhwa districts in Jharkhand and Aurangabad & Gaya districts in Bihar. The unfinished project as on date is providing irrigation to 71,720 hectares and completion of this project will provide additional irrigation benefit to the extent of 39,801 hectares. The irrigation potential through this Project in the two States would be as follows:

Total irrigation potential:        1,11, 521 hectares

Irrigation potential in Bihar:       91,917 hectares

Irrigation potential in Jharkhand:      19,604 hectares

The total cost of the project as assessed on date is Rs 2391.36 crore.  An expenditure amounting to Rs. 769.09 crore has been incurred on the project till date. The Union Cabinet has approved the proposal for completing the balance of the North-Koel reservoir project in Jharkhand & Bihar at an estimated cost of Rs 1622.27 crore during three financial years.

The common components amounting to Rs.1013.11 crore of balance works would be funded by the Central Government as a grant from PMKSY Fund.  This would include cost of Net Present Value (NPV) and Compensatory Afforestation (CA) which comes to Rs.607 crore and Rs.43 crore respectively.  The Central Government will also fund 60% of the cost of balance works amounting to Rs.365.5 crore (Bihar Rs.318.64 crore and Jharkhand Rs.46.86 crore) from Long Term Irrigation Fund (LTIF) under PMKSY as grant from the States of Bihar and Jharkhand.  The States of Bihar and Jharkhand will arrange 40% of remaining cost of balance works amounting to Rs.243.66 crore (Bihar 212.43 crore and Jharkhand 31.23 crore) as loan from LTIF through NABARD at the rate which is not subsidised and is related to market borrowing cost with no interest subvention.