PESHAWAR, Jan 16: Mahu Dhand, a natural water reservoir located in Kalam, can be turned into a feasible project of power generation provided a dam is constructed on the site, according to a survey.

The Indus Rivers System Authority has declared the project feasible as its construction will not affect the agreed formula for the water distribution among the provinces, official sources said.

Of late, sources said, Water and Power Minister Aftab Ahmad Khan Sherpao and the provincial government have shown interest in the project.

Sources said the project was important for the economic development of this backward part of the Swat Valley. The project is also expected to meet the water shortage in the Swat River and boost the tourism potential of the area.

Wapda is eager to see an early execution of the plan, but the provincial government must take up it with Wapda through its irrigation department, maintained the sources.

According to the survey, the project would play a vital role in producing hydel power and ensuring the availability of enough water for irrigation. Swat River provides water to the Malakand tunnels for electricity generation and irrigation through the Upper Swat Canal System from September to March.

The problem of water shortage has adverse effects on many crops, particularly sugarcane and tobacco.