The treaty has 12 articles agreements for an integrated development of barrage, dams and hydropower for mutual cooperation of the two countries by managing the water resources.
In 1920, the Indo Nepal water treaty was signed by the British Raj to build the Sarda barrage to irrigate the United Province.
In the treaty, Nepal government agreed to give 4093.88 acres of land on the eastern banks of Mahakali river for the construction.
[1][2] In 1971, Nepal started Mahakali Irrigation Project based on the 1920s Sarada agreement with the help from the World Bank in the Panchayat period.
[1] As required by Article 126 of the Constitution of Nepal, the Mahakali treaty was approved by a two-third majority of the joint upper and lower houses of Parliament.