This project is a joint venture of the states of Punjab, Haryana and Rajasthan. It comprises the construction of (a) the Beas-Satluj link, and (b) the Pong dam. The former provides for a 61 m high diversion dam at Pondoh, about 27 km long water conductor system consisting of two tunnels 12.13 km long beach and an open hydel channel and a power plant at Dehar with installed capacity of 660 mw (4 x 165 mw with provision for future extension of 2 x 165 mw).

The Pong dam (height 116 m) has been built across the Beas River in Dhauladhar Hills to maintain winter supply of water to Indira Gandhi Canal. It provides irrigation to about 21 lakh hectares of land in Punjab. Haryana and Rajasthan. It also houses a power plant of 240 mw capacity with a provision of 2 future units of 60 mw each.