It said a communication to this affect was received.
The proposal will be further processed for investment clearance by the Ministry of Jal Shakti of the Central government and finally submitted for approval of the Cabinet Committee on Economic Affairs (CCEA).
This will pave the way for the release of funds of Rs 577.62 crore to the state Compensatory Afforestation Fund Management and Planning Authority (CAMPA) and subsequently Stage-II forest clearance.
The Renuka Dam Project envisages construction of 148 metre high rockfill dam on the Giri river at Dadahu in Sirmaur district of Himachal Pradesh and a powerhouse at toe of the dam.
The project will ensure 49,800 hactre metre of live water storage in its reservoir and a firm water supply to the tune of 23 cumecs to Delhi.
An agreement for the Renuka Dam Project was signed in Delhi among six states - Uttar Pradesh, Haryana, Himachal Pradesh, Delhi, Rajasthan and Uttarakhand in January this year.
The total cost of the project was revised to Rs 6,946.99 crore in February 2020 though it was Rs 4,596.76 crore in March 2015.
The project will generate 40 MW power during the peak flow. It will be executed by the Himachal Pradesh Power Corp Ltd (HPPCL).
The total submergence area of the project is about 1,508 hectares. After the construction of dam, the flow of the Giri will increase about 110 per cent which will meet the drinking needs of Delhi during the lean seasons.
Investigation work of the project began in 1976 but its construction could not begin due to various reasons.
The 90 per cent cost of irrigation and drinking water component will be provided by the Central government and rest by beneficiary states.
The shares of the states Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Rajasthan and Delhi are 47.82 per cent, 33.65 per cent, 3.15 per cent, 9.34 per cent and 6.04 per cent, respectively.
The Delhi government has also agreed to fund 90 per cent of the cost of power component of the project.
An amount of Rs 446.96 crore released by government of India for land acquisition for the project has been distributed to the project affected families by HPPCL.
( With inputs from IANS )