Shahpur Kandi Project: Punjab gets a major boost in its power and irrigation capacity

Punjab (The Uttam Hindu): Punjab Chief Minister S. Bhagwant Singh Mann dedicated the Shahpur Kandi Project to the state's residents on the auspicious occasion of Sri Guru Nanak Dev Ji's Parkash Purab in November 2025, calling it a historic milestone for Punjab and the country. The 0,394.49 crore project is set to boost the state's electricity generation and irrigation capabilities, particularly in Majha region.

Mann praised the engineers, officials, and labourers who worked tirelessly to complete the project, describing it as a dream come true. He highlighted the project's benefits for farmers, industrialists, traders and citizens, driving economic growth and agricultural sustainability. The Shahpur Kandi Dam is expected to be a game-changer for the region.

Strengthening agriculture and employment prospects

The Shahpur Kandi Project will be a boon for Punjab's farmers, ensuring reliable irrigation and boosting power generation, said CM S. Bhagwant Mann, highlighting the state's agrarian roots. The project will also create large-scale employment opportunities for youth during construction and operations. "This dam is a lifeline for Punjab, especially Majha region — it will light up lakhs of homes and uplift the quality of life," Mann added.

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

The Shahpur Kandi Project is set to transform irrigation in Punjab's Majha region, benefiting around 5,000 hectares (12,500 acres) of farmland in Pathankot, Gurdaspur, and Amritsar districts. It'll also ensure uninterrupted irrigation for 1.18 lakh hectares under the Upper Bari Doab Canal system, said CM S. Bhagwant Mann.

He explained that the Ranjit Sagar Dam powerhouse couldn't operate at full 600 MW capacity during peak hours due to lack of a downstream reservoir, resulting in excess water flowing into Pakistan. The Shahpur Kandi Dam will store and utilise this water efficiently, addressing the issue.

Power generation andfuture 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.