Government policies and interventions for development in various sectors and issues arising out of their design and implementation - North Koel Reservoir Project January 14, 2018 A Memorandum of Understanding has been signed between Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India, State of Bihar and State of 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, Government of India, 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. About the North Koel Reservoir Project: The project is situated on North Koel river which is a tributary of Sone river finally joining the river Ganga. The North Koel Reservoir is located in the most backward tribal areas in Palamau and Garhwa districts of Jharkhand State. The construction was originally started in the year 1972 and continued till 1993 when it was stopped by the Forest Department, Govt. of Bihar. Since then, the work on dam is at a standstill. The project aims to provide irrigation to 111,521 hectares of land annually in the most backward and drought prone areas of Palamu & Garhwa districts in Jharkhand and Aurangabad & Gaya districts in Bihar. Background: LTIF was announced in the Union Budget 2016-17 with an initial corpus of Rs 20,000 crore for funding and fast tracking the implementation of incomplete major and medium irrigation projects. LTIF has instituted in NABARD as a part of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). Key facts for Prelims: North Koel river rises on Ranchi plateau and flows through Jharkhand. It joins the Sone a few miles north-west of Haidarnagar. The North Koel, along with its tributaries, meanders through the northern part of Betla National Park. The principal tributaries are the Auranga and the Amanat.