The project was approved during a meeting of Narmada Control Board chaired by Chief Minister Shivraj Singh Chouhan yesterday, an official release said.
The Board sanctioned Rs 2,143 crore for the Narmada-Malwa-Gambhir Link project which will provide irrigation facility in 158 villages covering 50,000 hectares area in Indore and Ujjain districts, it said.
Indore's Yashwant Sagar lake can also be filled up whenever needed through this project.
The project will not need any re-settlement and rehabilitation, it said.
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He also said that he met the Prime Minister and urged him to declare Narmada-Malwa Link Project as a national project, it said.
The Chief Minister said Narmada-Malwa Link Project is also important for utilising Madhya Pradesh's share in Narmada water before 2024, it said.
Through these projects, water will be available for irrigation, industries and drinking in Malwa region.