At a meeting between Uttarakhand Chief Minister Harish Rawat and Uttar Pradesh Irrigation Minister Shivpal Yadav it was decided that a joint special purpose vehicle (SPV) would be constituted for the purpose.
A feasibility study for the project would be completed soon, according to a government release.
The two also agreed to sign an MoU on the pending Jamrani dam and transfer of 37 canals to Uttarakhand, which have their heads and tails in the hill, but whose ownership is vested in Uttar Pradesh.
Of these 28 canals are in Haridwar district while nine are in Udhamsingh Nagar.
Yadav said all projects agreed upon in the meeting would be compelted in a time-bound manner.