Punjab is contemplating to construct 206 MW Shahpurkandi dam project hydro electric project on the Ravi river between Ranjitsagar dam and Madhopur head works. This stretch of the river is forming boundary between J & K state and Punjab state. Since Punjab had unilaterally exited from the earlier water sharing agreements, J & K state refused the project construction. Also J & K state is going ahead with the construction of Ravi canal originating from Basantpur to irrigate of land in Jammu region. This canal would draw river water by pumping the water released downstream from the Rangitsagar reservoir for which J & K state is not required to take consent from Punjab as it is not bound by earlier river water sharing agreements.