The project is first of its kind in the state in urban and rural water supply sector in terms of construction and operation maintenance.
The project will go a long way in solving the nagging drinking water problem of Berhampur town till 2045 and also supply water to 52 villages in Aska, Hinjili, Sheragada and Kukudakhandi blocks in the district.
An estimated 8.51 lakh population, including 6.75 lakh in urban and 1.76 lakh in rural areas would be benefitted in the project.
"Water supply is one of the priority schemes which was stressed by late Biju Patnaik whose birth centenary is being observed now, the chief minister said while addressing the gathering after commencement of the work.
"I will personally monitor the implementation of the project which is scheduled to be completed in next two years, said Patnaik.
The project involves withdrawal of water from Janibili diversion wire, about 46-km from here through underground pipe and setting up of a 60 million liter per day (mld) capacity treatment plant at Jagadalapur on the outskirt of the town, construction of 17 and 10 underground and overhead tanks respectively and to lay a 232-km new pipeline in uncovered areas in the town and its adjoining areas, sources said
The project was designed keeping an eye on the demand of water for next 30 years. Drinking water problem of the town will be sorted out for the next three decades, Urban and Housing Development minister Puspendra Singhdeo said.
He said the the implementing firm would also undertake maintenance of the project for the next five years.
Presently the town requires around 64-mld water. The town, however is getting around 54-mld from various sources including Dakhinapur reservoir and Rushikuya river water supply system.
It is facing the acute drinking water problem during the summer season, when water supply from Rushikulya system is reduced, sources said.