Bhubaneswar: In a major boost to the state’s agricultural infrastructure and rural economy, the Odisha Cabinet on Wednesday approved two major schemes under the Department of Water Resources with a combined financial outlay of over ₹12,847 crore.
The decisions aim to significantly expand irrigation coverage, revive water storage capacity, and protect farmers in rainfed and water-deficient regions against climate risks.
₹12,458 Crore Sanctioned for Parbati Giri Megalift Irrigation Project
To address irrigation deficit in non-gravity flow areas, the Cabinet gave its nod to the implementation of the “Parbati Giri Megalift Irrigation Project”. The project has been allocated ₹12,458.04 crore and will be implemented over a five-year period from FY 2026-27 to FY 2030-31.
Under this initiative, 161 mega lift irrigation schemes will be executed across all districts of Odisha. It will create an additional irrigation potential of 2,62,275 hectares. Surface water will be routed through an efficient pressurized Underground Pipeline (UGPL) distribution network to minimize water loss and support micro-irrigation systems.
“Due to the relatively low gestation period of mega lift irrigation projects, benefits will reach farmers faster compared to conventional gravity-flow systems,” stated the official release.
The government expects assured water availability to encourage farmers to shift from water-intensive paddy cultivation to high-value cash crops and enable multi-season cropping.
Prior to this approval, 209 Parbati Giri Megalift schemes were completed, establishing an irrigation potential of 2.66 lakh hectares across 23 districts.
₹389 Crore Approved for Phase-III Tank and MIP Renovation
In another key decision, the state Cabinet approved Phase-III of the “Improvement to Tanks & MIPs” scheme with an outlay of ₹389 crore. The project will be executed over four fiscal years, running from FY 2026-27 to FY 2029-30.
Key highlights of Phase-III include:
>> 680 Minor Irrigation Projects (MIPs) and water tanks will be renovated across the state, including ongoing spillover works from Phase-II.
>> Works will involve desilting reservoirs, strengthening dam embankments, repairing head regulators and spillways, and upgrading canal structures.
The project aims to restore live storage capacity and revive 15,700 hectares of lost ayacut (command area).
Beyond providing assured irrigation, the restored reservoirs are expected to improve infrastructure safety, boost integrated livelihood activities such as inland fisheries (pisciculture), and secure rural livelihoods.