The project was initially approved at Mhaladevi village in Ahmednagar in 1970 at an estimated cost of Rs7.9 crore. The dam was supposed to have a holding capacity of 11 TMC. Nine years on, in 1979, the project was relocated to Nilwande and the capacity was reduced to 8.5 TMC. With all the delays, the final cost of the project went up to Rs 5,177 crore - around Rs 5,169 crore more than the initial budget.
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