Central Government has approved construction of Shahpurkandi Dam Project on the Ravi River in Punjab. The union government will provide an assistance of ₹ 4853.8 million and will be provided over a period of five years from financial year 2016-2019 to 2022-2023. The new project will help in minimizing the loss of river water through the Madhopur Headworks downstream to Pakistan. The move will also increase the irrigation potential of 5,000 ha in Punjab and 32,173 ha in Jammu and Kashmir.
The funding from Central government to Shahpurkandi Dam project shall be made through National Bank for Agriculture and Rural Development (NABARD) under existing system for funding of 99 Pradhan Mantri Krishi Sinchayee Yojana — Accelerated Irrigation Benefits Programme projects under Long-Term Irrigation Fund.