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Water Resources Ministry signs MoU with Bihar, J'khand for completion of North Koel Reservoir Project

New Delhi, Jan 12 (UNI) A Memorandum of Understanding has been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Bihar and 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, 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 MoU was signed today during a meeting chaired by Mr Upendra Prasad Singh, Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation.
Mr Sanjay Kundu, Director General NWDA and Mr H R Dave, Deputy Managing Director, NABARD were also present.
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 crore, the common component amounting to Rs 1013.11 crore will be borne by the Union Government as a grant from LTIF under Pradhan Mantri Krishi Sinchai Yojana (PMKSY).
Out of remaining cost of works amounting to Rs 609.16 crore pertaining to Bihar and Jharkhand portion, 60 per cent of the cost amounting to Rs 365.5 crore will be financed by Central Government from LTIF making the total Central share as Rs 1378.61 crore. Remaining 40 per cent of cost amounting to Rs 243.66 crore 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.

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(Rptg correcting word in Para 1, line 1)
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