The pilot for the project, which has the potential for ending Delhi's water shortage, particularly during summer months, is aimed to start in a month's time, the statement said.
The Delhi Cabinet, in its meeting chaired by Chief Minister Arvind Kejriwal, on Wednesday approved the inter-departmental committee report on the project.
The report recommended that an amount of Rs 77,000 per acre should be paid to the farmers for leasing their land for the pilot project.
"The farmers will get the sum according to the number of acres of land they give the government on lease for the pilot project," the government said.
The government claims that the pilot project will prove to be a game-changer not only for Delhi, but for the whole country which is facing huge water crisis in different parts.
It also said the project is first of its kind in the country.
"The important project aims at conserving water in the Yamuna floodplains and creating a mega reservoir between Palla and Wazirabad to deal with the water shortage in Delhi, particularly during summer months," the government said.
The project envisages creation of small ponds in the floodplains which will catch overflows from the Yamuna during the monsoon.
"Most of the approvals have been received for the pilot project, barring two from the National Green Tribunal (NGT) committees, which are expected very soon," it said.
Kejriwal also thanked Union Jal Shakti Minister Gajendra Singh Shekhawat for the quick approvals by the Centre for the project and cooperation Delhi received from Centre for the pilot project.
( With inputs from IANS )