The MoU was signed by Shri Biswajit Basu, Director of Projects at NHPC, and Shri Alok Kumar, Managing Director of BSHPC, in the presence of Shri R.K. Singh, Minister of State of Power and New and Renewable Energy. The multipurpose project, which will be built in Supaul district, about 22.5 km downstream of the Bhimnagar barrage on the transboundary Kosi river, envisages the construction of a 945.5 m-long concrete barrage, as well as an earthfill dam with a length of about 5750 m across the Kosi to create gross storage of about 255.8 x 106 m3. Because of the large discharge variations in the river, a surface powerhouse on the left side of the barrage is currently designed to house seventeen 7.65 MW units with pit-type bulb turbines, rather than a smaller number of larger units, to maximize water utilization and enhance the economics.
The project, which will generate under a gross head of about 5.87 m, is designed to generate power for the Eastern Regional Grid, which comprises the states of Bihar, Jharkhand, Orissa, Sikkim and West Bengal. In addition to power generation, the Dagmara project will provide flood protection in northern Bihar and increase irrigation water supply.