The project, which is named Gangadhar Meher Lift Canal System, would be the first of its kind with underground pipeline in the country.
"The project will irrigate a gross command area of about 32,000 hectares - 25,600 hectares in kharif and 7,000 hectares in Rabi season in Bijepur area, a drought prone region of Bargarh district. The project will cost Rs 1250 crore," Patnaik said announcing the project.
The project will pump water from Bargarh main canal through a 18 km-long underground rising main pipeline, Patnaik said irrigation will be provided through underground pipelines based distribution system with outlets for every four hectare.
The CM said the government accords topmost priority to agriculture and has planned creation of additional irrigation potential of 10 lakh hectres in the state during by 2019.
The opposition Congress and BJP criticised Patnaik for making the announcement ahead of the assembly by-election at Bijepur. The seat fell vacant following the death of its sitting Congress MLA Subal Sahu on August 22.