The water was released through seven sluice gates after a traditional puja by the dam authorities.
There are plans to open ten sluice gates of the dam in phases.
Meanwhile, the water resources department has alerted the authorities of 12 down stream districts to make people aware about the flow of excess water in river Mahanadi.
The 12 districts which have been put on alert are Sambalpur, Bargarh, Sonepur, Angul, Boudh, Nayagarh, Cuttack, Kandhamal, Khurda, Jagatsinghpur, Kndrapara and Puri.