Based on investigation carried out until 1975, a project report was prepared which envisaged construction of rockfill dam having an installed capacity of 600 MW.

The foundation stone for the dam was laid on 5 June 2000 by Prime Minister Atal Bihari Vajpayee.

Due to problems associated with geological issues and declaration of part of reservoir area in 2006 as extension of Majathal Wildlife Sanctuary, the project got delayed.

Attempts to impound the reservoir first failed in December 2013 due to problems with sealing the diversion tunnels.

[5] Repairs were made and another unsuccessful impounding was reached in April 2014 as the diversion tunnel continued to leak.