[3] The reservoir created by the 56.4 m (185 ft) high earth cum concrete gravity dam on the Bhima River has a gross storage capacity of 3.320 km3 (0.797 cu mi).

[4] The project provides multipurpose benefits of irrigation, hydroelectric power, drinking, and industrial water supply and fisheries development.

Water supplied from the reservoir to irrigate agricultural areas primarily aims to reduce the incidence of famines and scarcity during drought conditions.

The reservoir operation also lessens the threat due to floods to cities such as Pandharpur (an important religious pilgrimage centre for the Hindus).

The drainage basin has rich and fertile agricultural land, and several water resources development projects have been built on its river system.

Government of Maharashtra has classified the stretches of the Upper Bhima River for the purpose of various uses as, A-I for drinking water without conventional treatment but after disinfection, A-II Drinking water after conventional treatment followed by disinfection, A-III for fish and wildlife propagation and A-IV for agriculture, industrial cooling and process.

Thereafter, the basin falls under the rain shadow area towards the east with rainfall incidence ranging between 450–600 mm (18–24 in) and is thus under drought conditions quite frequently.

The Krishna Water Disputes Tribunal, in its award in the year 1976 permitted Maharashtra to use only 4.753 km3 (1.140 cu mi) from the Upper Bhima River Basin.

[1] The spillway, structure has an Ogee shaped downstream slope designed to dispose a design flood discharge of 15,717 m3/s (555,000 cu ft/s) (the maximum probable flood discharge of 18,013 m3/s (636,100 cu ft/s) and a breaching section is provided between the NOF block and the earth dam section, controlled by 41 radial gates of 12 m (39 ft)x6.5 m (21 ft) size erected over the crest of the dam.

The physical and chemical analysis indicated that the pH values, free carbon dioxide, total hardness, alkalinity, nitrates, nitrites, chlorides, sulphates, calcium and magnesium were within prescribed limits.

Potassium and ammonia were within prescribed safe limits of acceptance for use of stored water for drinking, industrial use and for fish propagation.

[12] However, since its creation in 1980, it is now recorded that substantial quantity of the untreated sewage is discharged into the streams which flow into the Ujjani Reservoir, particularly in the river stretch close to the Pune city.

[13] The migratory bird species in the Ujjani reservoir have been studied by the Science and Technology Park (STP), a Pune-based institution.

Some of the key species which are found around backwaters are: greater flamingos, pheasant-tailed jacana, painted stork, moorhen, small pratincole, river terns, aquatic insects, pied kingfisher and stilts.

[10] The Ujjani Dam and its large reservoir provide multi-purpose benefits of irrigation, hydroelectric power generation, drinking and industrial water supply, and fisheries.

The pen stock extension piping is detached when water pumping to the canal is not required to restore its normal power generation when the reservoir level is above the left canal's MDDL[18] The high density of phytoplankton (of many species) in the Ujjani Reservoir is conducive to proliferation of fish species.

[19] Production of fish resources from the reservoir has been estimated at 712 tonnes per year, and 19 percent of the catch consists species of major carps.