A decision to harness the available water resources of Betwa River was taken in a meeting held on 22nd July, 1972 between Chief Ministers of Uttar Pradesh and Madhya Pradesh. Further, Uttar Pradesh and Madhya Pradesh in a meeting held on 9th December, 1973 agreed for setting up of a tripartite Control Board for the speedy, smooth and efficient execution of the various interstate projects of both the States. Betwa River Board was constituted in 1976 under the Chairmanship of Union Minister of Water Resources by an Act of Parliament to execute the Rajghat Dam Project and Power House. The Project authority started construction of the Project under the overall guidance of the Board after promulgation of Betwa River Board Act, 1976. The benefits and cost of the above Project are shared equally by both the State Governments.
Construction of Dam upto top level was completed with installation of Radial Gates. Since then the impounding of water is being done regularly for generation of power and irrigation in both the States.
The Rajghat Dam Project consists of a 43.5 m. high and 562.5 m. long Masonry Dam across the River Betwa flanked by earth dams having a total length of 10.79 Km. and maximum height of 29.50 m. The Rajghat Dam Project would provide irrigation to 1.38 lakh ha in U.P. and 1.21 lakh ha. in M.P. Construction of Canal System for irrigation has been taken up by both the States in their territories. Proposal for generation of Hydel Power from water releases for irrigation at the toe of dam was added later on to the original concept of the project. The civil works for Rajghat Dam, Power House and appurtenant works have been executed by the Betwa River Board and Electrical/Mechanical works of the Power House by Madhya Pradesh State Electricity Board (M.P.S.E.B).