The Hirakud Dam, built across the Mahanadi in Odisha’s Sambalpur district, is a vital national asset for irrigation, power generation and flood control. Considering its strategic importance, the government has always been concerned about the safety and security of the areas around it and allows only restricted movement of tourists.
However, the vast reservoir of the dam and the areas surrounding it may now witness a spate of tourism development and private business investments. The water resources department of the Government of Odisha has issued “site specific” no objection certificates (NOCs) sought by the tourism department for development of “niche tourism”, as part of its integrated tourism master plan. The plan includes laser music show, cruise terminal for day cruising facilities, hotels/ floating hotels, arrival plazas, retail spaces, dam museum, and caravan in some of the areas to boost tourism.
The move has raised concerns about the environmental impact of such projects on the dam and its reservoir. The reservoir, said to be the largest artificial lake in Asia, has a robust ecosystem with a rich aquatic reserve and wildlife; it is also a major site for migratory birds.
NOCs have been given for eight of nine major sites around the dam in Sambalpur and Jharsuguda districts, albeit with several riders, according to a letter dated November 19, 2025. It was sent by Sasmita Mishra, under-secretary of the water resources department, to Balwant Singh, secretary of the tourism department.
NOC has been declined for Site No.1 (Ashok Niwas Hill Front) because the “right butting of Hirakud Dam has been constructed over the Chandli Dungri Hill. Any type of constructional activities over here may endanger the safety and stability of the dam”, the letter said.
For the rest of the proposals, NOCs have been issued subject to use of land above 642 feet above RL (reservoir level). NOCs for tourism activities have been issued for areas downstream of the left dyke beyond 500 metres and for areas downstream of the dam beyond 600 metres.
Several terms and conditions laid down in the letter while granting the NOCs reflect the fragile nature of the ecosystem surrounding the Hirakud reservoir, which need to be protected while carrying out tourism development. The water resources department has instructed that the guidelines of the National Dam Safety Authority consisting of instructions for safety and security of dams during the development of tourism activities around the dam/reservoir and Ramsar sites should be strictly followed. Some of the development projects, the letter said, are subject to “risks associated with dam breach and other emergency and security issues”.
“Any permanent construction work, water sports activities like boating, swimming, fishing, bird watching, diving, etc. shall not be allowed in the upstream of the dam and spillway in the reservoir area within 10 H or 500 metres, whichever is greater,” Mishra said in the letter. (H is the maximum height of the dam from the deepest section, measured from the hill line of the dam.)
She further said the tourism department should take all necessary precautions to avoid noise and water pollution so that it does not cause any significant disturbance to aquatic animals and birds. The tourism department has to take care of any ecological and environmental damage during and after the execution of the development and to take necessary measures to restore it, she added.
Her letter also raised the concerns regarding the creation of solid waste and liquid effluent from tourism activities and their adverse impact on wildlife, birds and aquatic organisms in the reservoir. It stressed on suitable disposal mechanisms.
Lawyer Siddharth Shankar Mishra said the Hirakud Dam was built for irrigation, flood control and survival of millions but now the government wants it to be a luxury playground for the rich. “This is surrender to corporate greed. The government must be held accountable before another ecological disaster is signed away,” he said.
Farmer leader Saroj Mohanty said the Hirakud Dam, its reservoir, and the surrounding areas are ecologically sensitive. The terms and conditions in the letter from the water resources department to the tourism department themselves raise the same concerns. “These issues should be in the public domain and discussions should be held with various stakeholders before development activities are carried out in these areas,” he said.