Shahpur Kandi Project: Punjab gets a major boost in its power and irrigation capacity
Formally inaugurating the project, Punjab Chief Minister Bhagwant Mann said the day marked a historic milestone not only for Punjab but for the country as a whole.
On the sacred occasion of the Parkash Purab of Sri Guru Nanak Dev Ji, Punjab Chief Minister Bhagwant Singh Mann, in November 2025, dedicated the long-awaited Shahpur Kandi Project to the people of the state. Built at a cost of Rs 3,394.49 crore, the project is expected to significantly strengthen Punjab’s electricity generation capacity while expanding irrigation facilities, particularly in the Majha region.
Formally inaugurating the project, the Chief Minister said the day marked a historic milestone not only for Punjab but for the country as a whole. Congratulating people on the Guru's Parkash Purab, Mann expressed gratitude to engineers, officials, and labourers who worked relentlessly to complete what he described as a dream project. He said the Shahpur Kandi Dam would serve farmers, industrialists, traders, and ordinary citizens alike by supporting both economic growth and agricultural sustainability.
Strengthening agriculture and employment prospects
Highlighting Punjab's agrarian character, Mann said the project would bring substantial benefits to farmers by ensuring reliable irrigation while also boosting power generation. He added that the project would generate large-scale employment opportunities for youth during both construction and operational phases.
Describing the dam as a future lifeline for Punjab, especially the Majha belt, the Chief Minister said it would illuminate lakhs of homes and improve the quality of life across the region.
Project cost and sharing arrangement
Providing details, Mann said the Shahpur Kandi Dam Project has been constructed at a total cost of Rs 3394.49 crore. Of this, Punjab has contributed Rs 2694.02 crore, accounting for nearly 80% of the expenditure, while the remaining Rs 700.45 crore has been funded by the Government of India.
He said a total of 3171.72 acres of land has been acquired for the project, including 1643.77 acres in Punjab and 1527.95 acres in Jammu and Kashmir.
Major irrigation gains for the Majha region
On irrigation benefits, the Chief Minister said the project will provide irrigation facilities to around 5,000 hectares, or nearly 12,500 acres, of farmland in districts such as Pathankot, Gurdaspur, and Amritsar. In addition, it will ensure uninterrupted irrigation to about 1.18 lakh hectares under the Upper Bari Doab Canal system.
Mann explained that earlier, the Ranjit Sagar Dam powerhouse could not operate at its full 600 MW capacity during peak demand hours due to the absence of a downstream reservoir. Excess water would flow unused into Pakistan. With the commissioning of the Shahpur Kandi Dam, this water will now be stored and utilised efficiently.
Power generation and future timeline
The Shahpur Kandi Dam stands 55.5 metres high and includes a 7.7 km-long hydel channel. Two powerhouses with a combined capacity of 206 MW are being constructed, with nearly 75% of the work already completed. Mann said the project is expected to become fully operational by March 2026, when electricity generation will begin.
Tourism and regional development
The Chief Minister also highlighted the project’s tourism potential. A large upstream lake has been created, which will be developed as a major tourist destination. Mann said the Shahpur Kandi Dam, along with the Ranjit Sagar Dam and Chamrod, will be developed as a world-class tourism hub, promoting water sports and generating livelihoods. He added that several companies have already expressed interest in tourism projects in the region.
Cabinet Ministers Lal Chand Kataruchak and Barinder Kumar Goyal, along with Chief Secretary KAP Sinha, were present at the event.
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