Ranchi, Aug. 17: The Union cabinet has dragged out a 1970 reservoir project from cold storage to irrigate four drought-prone districts in Jharkhand and Bihar after truncating its design and dimensions to save Palamau Tiger Reserve from submerging, something that was feared earlier.

Approved yesterday, the North Koel Reservoir project, with the Mandal dam in Jharkhand's Latehar district as the centrepiece, is likely to water 111,500 hectares in Palamau and Garhwa (Jharkhand) and Gaya and Aurangabad (Bihar).

"I have been informed that the Centre will complete the project within 30 months. Water and Power Consultancy Services (India) has been appointed the groundwork consultant. Detailed project reports are being prepared," state water resources minister Chandra Prakash Choudhary today said, adding that his senior bureaucrats were currently in Delhi.

Originally, the dam was proposed to be 67.80 metres high, 408.50 metres long, with a full reservoir level of 367.28 metre and gross storage capacity of 1,170 million cubic metre. With a proposed 24MW hydel power plant, some 6,371 hectares were feared to go underwater, including a sizeable part of Palamau Tiger Reserve, a habitat for rare fauna and flora.

Following massive protests from environmentalists, wildlife activists and villagers through decades, the reservoir level has now been brought down to 341 metres and the proposed hydel power plant scrapped.

The total submergence area is now only 1,730.97 hectares, steering clear of Palamau Tiger Reserve. The bulk of submergence has already occurred as the Mandal dam in Latehar and Mohammedganj barrage in Palamau are nearly ready.

"The tiger reserve won't be affected as the project area has shrunk. There would be no irrigation facility from Mandal dam in Kutku village of Latehar. Water will be supplied through right and left main canals from Mohammedganj barrage in Palamau that would benefit this district and adjoining Garhwa in our state and then go downhill to Aurangabad and Gaya in Bihar," the minister elaborated.

Though the minister said the remodelled project shrunk its irrigation potential from 124,270 hectares to 111,500 hectares, he pointed out how Jharkhand stood to gain.

"Bihar's irrigation potential went down to 91,917 hectares from 111,800 hectares, but Jharkhand's has gone up to 19,604 hectares from 12,470 hectares," he said.

Right now, the main dam has been built but its eight sluice gates have to be put up. The Mohammedganj barrage and its right and left canals were almost complete but work on their distribution channels systems was awaited.

For canal distribution systems and command area development, 1,637.95 hectares in Palamau, Garhwa and Latehar have been acquired.

Approved by the Centre in 1970 at an estimated cost of Rs 30 crore, the project cost has been revised five times since then, with the latest estimate being Rs 2,391. 37 crore of which Rs 769.09 crore has already been spent. The Centre has now approved Rs 1,622.27 crore, of which it will pay Rs 1,013.11 crore. Jharkhand will pay only Rs 31.23 crore and Bihar Rs 212.43 crore.

A human problem may arise. Officially, all land donors got their compensation dues in the early 1980s but continue to live onsite. It remains to be seen if the government asks donors whose land would not go under water to return their compensation money.