Cabinet okays Rs 1622 Cr for completing North Koel Reservoir Project
Published: Aug 16, 2017
By TIOLCORPLAW News Service
NEW DELHI, AUGUST 16, 2017: 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 project aims to provide irrigation to 111,521 hectares of land annually in the most backward and drought prone areas of Palamu & 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 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 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.
The Cabinet also approved execution of balance works of the project on turnkey basis by M/S WAPCOS Ltd., a CPSU under MoWR, RD & GR as Project Management Consultant (PMC). The execution of the project will be monitored by an Empowered Committee of Government of India headed by CEO NITI Aayog.