Chief Minister Jai Ram Thakur on Tuesday signed Memorandum of Understanding (MoU) for Rs 4,000 crore Lakhwar Multi-Purpose Project (MPP) in the Upper Yamuna Basin.

Chief Ministers of six states including Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand and Himachal Pradesh signed the MoU in presence of Union Minister for Water Resources Nitin Gadkari at New Delhi on Tuesday.

The Lakhwar MPP envisages constriction of 204 metre high dam across river Yamuna with live storage capacity of 330 million cubic metre (MCM) and generation of 330 MW of power.

The project benefits include supply of 79 MCM of clean drinking water which would go a long way in solving the water scarcity issues in the six states, 65 per cent increase in non-monsoon flows in Yamuna river and bring additional 34,000 hectares under irrigation.

Thakur said Central government would bear 90 per cent cost of the water component project and the rest 10 per cent of the water component would be borne by states in the ratio of water allocated to them as per water sharing MoU of 12 May, 1994.

“The cost of power component of the project would be borne by Uttarakhand and they will avail the benefits of the power generation. The project would also be constructed by Uttarakhand government within 54 months and project work would be monitored by the Upper Yamuna River Board,” he said.

The CM said HP would receive 3.15 per cent of water as its share and correspondingly contribute Rs 8 crore as the states share to the water component of the project.

“Total three major storage projects are proposed to be constructed on the river Yamuna and its tributaries, Tons and Giri in the territories of UK and HP, namely Lakhwar MPP with 330 MCM live storage and 300 MW power generation on Tons river and Renukaji Project with 498 MCM live storage and 40 MW power generation on Giri river,” he said.

Union Minister of State for Water Resources, River Development and Ganga Rejuvenation Arjun Ram Neghwal also present on the occasion.