This project has been jointly launched by Punjab, Haryana and Rajasthan. It is the biggest multi-purpose project in India, started in1948 and completed in 1968. This project derives its name from the two dams Bhakra and Sutlej, built on a tributary of the Indus, the Sutlej.

The Bhakra dam , constructed across the river Sutlej, is located at the foot of the Siwalik hills in Himachal Pradesh.The first prime minister of India, Late Pundit Jawaharlal Nehru dedicated this dam to the nation on 20th November, 1963. The Bhakra dam is the highest Concrete gravity dam in Asia and the second highest in the world. The Bhakra dam has played an important role in checking the floods in the river Sutlej.

The Nangal dam constructed across the river Sutlej, about 12 kilometres downstream is at Nangal in Punjab. This reservoir is used as a backup in case the Bhakra dam fluctuates.Storing the water of the Sutlej river coming from the Bhakra dam,the Nangal dam forms a 6 kilometre long artificial lake. Its Height is 29 metres(95 feet) and Length is 304.8 metres(1000feet) .