Delhi wants water and Himachal Pradesh is willing to provide. But neighbouring Haryana is not willing to relent, as it requires more water to cater to a rising population and the growing needs of the farming sector and industries.

As per an agreement signed in November 1994, while Delhi would get full water supply from the Renuka Dam until the Kishau Dam and Lakhawar-Vyasi Dam projects became functional, Himachal Pradesh would have the rights to the 40 MW of power generated through it, an official said.

The Haryana government is upset that Delhi and Himachal Pradesh have divided the water and power among themselves, and have not notified the other co-basin states, including Uttar Pradesh and Rajasthan.

The problem Delhi faces is that though Haryana has a Congress government, it is not willing to compromise its stand, as any such move would give ammunition to the Indian National Lok Dal-Bhartiya Janata Party (INLD-BJP) combine for the Lok Sabha elections due shortly. At the same time, Bhupinder Singh Hooda fears a backlash for failing to get either water or electricity from a BJP government in Himachal Pradesh.

The dam on Giri River will supply the Capital with an additional 275 million gallons per day (MGD) of water, which will provide Delhi with much-needed relief. The dam has been planned keeping in mind the requirements of the 2021 Delhi Masterplan.

The dam will offer a storage capacity of 542 million cubic metre of water and will have an installed capacity of 40 MW of power. Water from the dam will be brought into the Yamuna through the Hathni Kund barrage. From the barrage, it will be sent to the Munak Channel and finally brought to the Capital.