Investment clearance for Lakhwar Multipurpose Project has been accorded by the Government in April, 2016 with an estimated cost of Rs. 3966.51 Crore (Irrigation component Rs. 2578.23 Crore & power component Rs. 1388.28 Crore).
The Water Resources Ministry has received a letter dated 06.01.2016 from Government of Haryana for funding of Lakhwar Dam as per the guidelines of National Projects. As per Memorandum of Understanding (MoU) dated 12th May, 1994 amongst participating Upper Yamuna Basin States, an allocation of 47.818% of utilizable water resources of river Yamuna assessed on mean year availability exists for Haryana. Based on the MoU, a draft agreement on Lakhwar Project was circulated in September, 2013 amongst basin States for their observation. A meeting was held on 20th July, 2016 under the Chairmanship of the Secretary, Ministry of Water Resources to arrive at an agreement.