This reservoir has been constructed by adding three natural hills. Maniyari river flows through the middle of these three hills. In view of the possibilities of agriculture during the British rule, the process of making the dam by joining these three hills started in 1927, which was completed three years later in 1930, after it was renamed as Rajiv Gandhi Reservoir. Due to this dam being built in Khudia village, this dam is also known as Khudia reservoir. The farmers of Mungeli Lorami and Block are mainly dependent on agriculture for the Rajiv Gandhi reservoir.

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