The Odisha government said on Thursday Rs 75,000 crore will be spent in the next five years for developing the state's water resources.
Chief Minister Naveen Patnaik has directed the Water Resources department to prepare a comprehensive river policy in the next three months, a statement from the Chief Minister's Office.
Patnaik said several barrages will be constructed on the Mahanadi river to store water which will be utilised for agricultural purposes as well as providing drinking water.
The barrages will be constructed where there is less possibility of displacement.
Official sources said the Odisha government is preparing a master plan to utilise the Mahanadi's waters by constructing as many as seven barrages in the downstream of the river and 22 barrages on tributaries and distributaries of the river.
The government would also spend Rs 400 crore in next three years for concrete lining of the Bargarh main canal, the statement said, adding the Chief Minister also advised to start the tendering process of the Gangadhar Meher Megalift Canal System in three months.
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