[2][3] The headworks of the project is Sharada Barrage, which was constructed in 1928 by the British-Indian government.
In 1976, International Development Association agreed for financing the project and an agreement was signed on September 29, 1980, with an implementation period of 5 years.
[2] The second stage, was signed on November 18, 1988, between Nepal and the International Development Association.
The third stage comprises a 151 km long canal in Nepal side, of which 28.5-km section of the has been completed as of 2023.
The starting part of canal near the barrage, about 1 km long, lies inside the Indian border (in the land that was granted to British India during the treaty).