Bhubaneswar: The State Government will seek a loan of Rs 3,554 crore from the World Bank for the development of the Mahanadi water basin system. The project will be implemented in a two phase. The feasibility report has already been completed. The Detailed Project Report (DPR) would also soon be prepared. A decision to this effect was taken at the meeting of the Orissa Water Sector Improved Project. The meeting was presided over by the Chief Secretary Ajit Kumar Tripathy.

The money would be spent for the control of flood and improvement of irrigation purposes. Canal system and the catchments of Hirakud reservoir system would be developed. Debate has been raised on the Mahendratanya. Question has been asked whether Andhra Pradesh or Orissa would gain much from the Mahendratanaya river. The public opinion has already been divided over the issue.

The State Government has decided to build two barrages on Mahendratanya. While Orissa Government will spend Rs 38 crore for this purpose, Andhra Pradesh Government has decided to spend Rs 127 crore for its purpose barrage on the lower stream of Mahendratanya.