MP govt frees Rs 500 crore for stalled Narmada dam projects

The Madhya Pradesh government has released Rs 500 crore to speed up land acquisition and rehabilitation for three key multipurpose projects in the upper reaches of the Narmada river. The projects in Upper Narmada, Raghavpur and Basania had been stalled for over three years due to issues related to compensation in tribal areas.

The release forms part of the Rs 1,280 crore special relief package approved by the state cabinet in December 2025. It is in addition to the Rs 1,656.02 crore already provided in the original Detailed Project Reports (DPRs), taking the total cost of the special package to Rs 2,936.02 crore.

“The state government has released Rs 500 crore out of the special package announced in December 2025. This will expedite the land acquisition process for the Upper Narmada, Raghavpur and Basania dam projects,” Additional Chief Secretary, Narmada Valley Development Department, Dr Rajesh Rajora, told PTI.

When asked why a special package was required, officials from the Narmada Valley Development Department said land acquisition efforts that began in 2023 faced strong opposition from tribal families and were subsequently halted.

“About 85 per cent of the affected land is in Fifth Schedule (tribal-dominated) areas. Since the collector guideline rates were very low, this gap led to strong resistance and stalled surveys,” an official said.

To address the issue, the government approved a special consent-based compensation package, similar to the one used for the Ken-Betwa project. The package provides compensation for land at either the collector rate plus an additional 100 per cent compensation or Rs 12.5 lakh per hectare, whichever is higher.

It also includes additional compensation for huts, trees, orchards, wells and tubewells, along with a one-time rehabilitation grant for each affected family. The grant includes either a plot in an urban area and Rs 6.5 lakh, a plot in a rural area and Rs 7 lakh, or Rs 12.5 lakh in cash.

Explaining the compensation framework, a senior official said, “Let’s presume that a farmer loses agricultural land, a tubewell, and a house. Under the compensation package, the farmer will receive compensation for the agricultural land at either the collector rate plus an additional 100 per cent compensation or Rs 12.5 lakh per hectare, whichever is higher.

“The farmer will also receive additional compensation for the tubewell. For the house, the farmer will either receive a plot and Rs 6.5 lakh in an urban area or a plot and Rs 7 lakh in a rural area. If the farmer does not want a plot, a one-time cash compensation of Rs 12.5 lakh will be provided instead.” SC/ST families from tribal areas will receive an additional Rs 50,000.

According to officials, the special package represents a substantial enhancement over the provisions included in the original DPRs.

Highlighting the benefits of the projects, Rajora said the three dams will create a total storage capacity of 2,637 million cubic metres (MCM), or about 2.14 million acre-feet (MAF).

“Water stored (in the dams) during the monsoon season can be released in a controlled manner during the dry (non-monsoon) season. The storage will help irrigate large areas of agricultural land — directly around 72,367 hectares through these projects, while supporting many more through the basin system,” Rajora said.

“It will also generate 125 MW of clean hydropower and provide drinking water to villages. Importantly, storing water in the steep-sloped upper reaches will reduce flood risks in the gently sloping middle reaches of the Narmada river, especially around Jabalpur and the Narmadapuram area,” he added.

Officials said that by holding back heavy monsoon flows, the dams will lower flood peaks, protect villages and farmland, and reduce soil erosion downstream.

The controlled releases from these upper dams will improve water management for existing downstream projects such as the Bargi Dam. This will create a more efficient cascade system across the Narmada basin, allowing surplus monsoon water to be utilised throughout the year.