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Excerpts from: Government of India, 2000, Inter-basin water transfer proposals, New Delhi. This document describes the status of the project investigations by the agency, which was set up in 1982 for this purpose (source - http://www.hindunet.org/saraswati/sarasvatilocus.pdf)

"It is proposed to complete the feasibility reports of the remaining Peninsular and Himalayan Rivers Components in a period of about 5 and 10 years respectively. Implementation of the interbasin water transfer link schemes can be taken up in a phased manner depending on the priorities of the Govt. ad availability of funds. But before this, certain other steps, viz. negotiations and agreements amongst the states involved in interbasin transfer, preparation of Detailed Project Reports (DPRs), Techno-economic  appraisal of DPRs and investment clearance of the schemes, funding arrangements and fixing agencies for execution etc. would be necessary...

  "The National Water Policy adopted by the Government of India in September 1987...It states: `Water should be made available to water short areas by transfer from other areas including transfers from one river basin to another based on National Perspective after taking into account requirements of the areas/basins.'

"Himalayan Rivers Development  

"Himalayan Rivers Development envisages construction of storage reservoirs on the principal tributaries of the Ganga and the Brahmaputra in India, Nepal and Bhutan, along with inter-linking canal systems to transfer surplus flows of the eastern tributaries of the Ganga to the west, apart from linking of the main Brahmaputra and its tributaries with the Ganga and Ganga with Mahanadi.

  "The Himalayan component would provide additional irrigation of about 22 million hectare and generation of about 30 million MW of hydropower, besides providing substantial flood control in the Ganga and Brahmaputra basins. It would also provide the necessary discharge for augmentation of flows at Farakka required interalia to flush the Calcutta Port and the inland navigation facilities across the Country.

"Peninsular Rivers Development

  The Peninsular component is expected to provide additional irrigation of about 13 million hectare and is expected to generate about 4 million KW of power.  

"This component is divided into four major parts:

      1. interlinking of Mahaadi-Godavari-Krishna-Cauvery rivers and building    storages at potential sites in these basins

This is the major interlinking of the river systems where surpluses from the Mahanadi and Godavari are intended to be transferred to the needy areas in the south.

      2. interlinking of west flowing rivers, north of Bombay and south of Tapi

  This scheme envisages construction of as many optimal storages as possible on these streams and interlinking them to make available appreciable quantum of water for transfer to areas where additional water is needed. The scheme provides for taking water supply canal to the metropolitan areas of Bombay; it also provides irrigation to the coastal areas in Maharashtra.  

      3. interlinking of Ken-Chambal rivers  

  The scheme provides for a water grid for Madhya Pradesh and Uttar Pradesh and interlinking canal backed by as many storages as possible.

      4. diversion of other west flowing rivers

  Heavy rainfall on the western side of the `Western Ghats' runs down numerous streams which empty into the Arabian Sea. Construction of an interlinking canal system backed up by adequate storages could be planned to meet all requirements of keral as also for transfer of some waters towards east to meet the needs of drought affected areas.  

Benefits

  "The National Water Development Plan would provide additional irrigation benefits of 35 million hectare i.e. 25 million hectare from surface waters and 10 million hectare by increased use of ground waters over and above the ultimate irrigation potential of 140 million hectare from Major, Medium and Minor projects and generation of 34 million KW of power, apart from the benefits of flood control, navigation, water supply, fisheries, salinity and pollution control etc."