'While the compensation amount has been increased from Rs.1.79 lakh to Rs.2.50 lakh per bigha for irrigated land, Rs.67,000 to Rs.1.5 lakh will be paid per bigha for semi-irrigated land,' he added.

The 148-metre-high dam on the Giri river, a tributary of the Yamuna, 350 km from Delhi, will provide 23 cubic metres of water per second to Delhi and will generate 40 MW of electricity for the hill state.

Water from the dam will be released into the Yamuna river, from where it will reach Haryana's Hathni Kund barrage and finally Delhi.

The Renuka dam project, named the Lord Parshuram Sagar project, has been facing protests with affected families rejecting the compensation being offered in lieu of their land that will be submerged by the reservoir.

Under the banner of Renuka Bandh Jan Sangharsh Samiti, residents of over a dozen villages have launched an agitation in the area. They claim the government has not taken them into confidence before starting the land acquisition process.