An official of the Ministry said they have got permission for the project area that falls in Uttar-Pradesh.
The project-related works in Madhya Pradesh awaits a green signal by the state's Forest department.
A National Water Development Agency (NWDA) official said that a fresh proposal has been sent to the state's Forest and Wildlife department after they had voiced concern over the earlier plan.
Union Water Resources and River Development Minister Uma Bharti is hopeful that the project would commence by the end of this year, as was announced earlier.
According to the detailed project report, 60,000 hectare of agricultural land will get irrigation facility once the project is completed.
The large-scale project aims at reducing flood and water scarcity risks in the country by linking rivers through a network of reservoirs and canals.