The governments of Punjab and Jammu & Kashmir have signed a fresh pact for the completion of the Shahpur Kandi Dam project, 11 km downstream Ranjit Sagar Dam.
It may be recalled that work on the project worth Rs 2,285 crore was abandoned two years ago following a dispute. The hydro power project was expected to generate 206 MW of power.
According to reports, prime minister Narendra Modi was keen at completing the project. Following this, his office had intervened to get the agreement signed afresh.
Earlier, several attempts to revive the project by both the governments and chief secretaries level talks did not yield results.
As per the crest level of 398.40 metres, as decided by the chief engineers of the two states, would be the basis for resuming work on the project.