The Central Government has agreed to enhance its share in the Shahpur Kandi Dam project on river Ravi from 60 to 86 percent, thus conceding Punjab Chief Minister Capt Amarinder Singh’s request to reduce the state’s contribution to only 14 percent.
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 way for augmenting the state’s irrigation potential manifold, said the Chief Minister, after receiving a letter from the Ministry regarding the same.
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 Union Ministry, the estimated cost of 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 1,938.74 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 Punjab Government, said an official spokesperson.