The Gulf of Khambhat Development Project (Kalpasar) envisages the construction of 30 km. long dam on Gulf of Khambhat between Dahej(east)&Bhavnagar(west), creation of 2000 sq.km fresh water reservoir. About 10,000 million cubic meter of water inflow of the rivers like Narmada, Dhadhar, Mahi, Sabarmati & some of Saurashtra rivers will be stored.

It is planned to divert Narmada flood water to reservoir through Narmada Diversion canal to the extent as available and feasible, by constructing a barrage across Narmada river at Bhadbhut village (Dist. Bharuch). As per the present planning, a canal system at three different elevations would provide irrigation source for about 1.05 million hectares of land in coastal Saurashtra.

The water will be available for domestic and industrial use also. The other benefits of the project are surface transport link, reclamation of saline land and ground water improvement around freshwater reservoir, potential development of fisheries, tourism.

The project will serve as a life line of the Saurashtra region as well as accelerator for growth of economic activities of Gujarat state