Patna, Apr 26 (IANS): Power-starved Bihar's 126 MW capacity Dagmara hydro power project in Supaul district has got clearance from the Central Water Commission (CWC), and the state government is likely to start work on it soon, officials said Thursday.

Bihar Energy Minister Bijendra Prasad Yadav, when contacted, said a big hurdle was over with the CWC's go-ahead to the state's biggest hydel project. "The work on the project over Kosi river will start soon after other formalities are completed," he said.

Earlier, the commission had raised objection over the proposed site of the project near the Nepal border, Bihar State Hydro Power Corporation (BHPC) officials said.

The Dagmara project's fate hung in balance also because the Central Electricity Authority had not given its nod to it in view of submergence of vast areas in bordering Nepal. Now the project is proposed to be set up in the downstream of Kosi river.

"A revised detailed project report has been prepared and sent to the authority for its endorsement," they said.

The Asian Development Bank (ADB) had already agreed to provide Rs.4 billion for the project.

A BHPC official said that work on the project is likely to begin this year and will be completed in the next two and half years if everything goes according to plan.