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Bhavnath Temple and Government of Gujarat

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Case Analysis: Bhavnath Temple

Problem Statement:

What course of action should the Government of Gujarat follow for the construction of Dam.

Situation Analysis:

The Public Works Department has been working towards the construction of dam across the rivers Lokmata and Sadmata in the state of Gujarat to improve the agricultural production. However, they have been facing resistance from the villagers as the construction would result in the submergence of Bhavnath temple located in the projected reservoir. The issue is of sensitive nature, as it revolves around both the religious sentiments and economic development of the state. The department is uncertain about how to accommodate both the facets under a single umbrella.

According to the original proposal, the dam was set to impound 4700 million cubic feet of water without submergence of the Bhavnath temple and the revised proposal suggested an increase in capacity to 5700 million cubic feet at an additional cost of Rs. 20 lakhs. However, the additional benefits were to be realized at the cost of the temple.


Original Plan

Subsequent Plan

Dam Capacity

4700 million cubic feet

5700 million cubic feet

Irrigation Land

92000 acres (19300 + 73600)

112000 acres

Numbers of district benefited



Land to be submerged

10500 acres

Increased area

Affected villages


Cannot be determined

Compensated villages



FSL (Full Supply Level)



HFL (Highest Flood Level)



TDL (Top of the Dam Level)



Catchment area

230 square miles


Expected Revenue

15.83 lakhs

Approx. 19.27 lakh

Expected increase in agricultural production

30400 tons per annum

Will increase according to

proportional increase in area

The new plan was devised with the interest of raising the irrigation potential with the new capacity at 5700 million cubic feet. While there was a marginal addition to the cost of constructing the canal system, the irrigation facilities would spread to a larger area(20,000 acres) which would result in an increase in the agricultural production and revenues.

Criteria for Decision Making:

  1. Long-term economic development of the state
  2. Agricultural advancement
  3. Religious sentiments
  4. Social cost
  5. Marginal benefit vis-à-vis. Marginal cost


  1. Follow the initial plan of construction of dam with capacity of 4700 million cubic feet.
  2. Follow the subsequent plan of construction of dam with capacity of 5700 million cubic feet.
  3. Follow the first (1st) alternative with expansion potential.

Evaluation of Alternatives:

Rank of



Alternative 1

Alternative 2



Long Term Economic Development of the state





Agricultural advancement





Religious sentiments

Attended to

Not Attended to

Attended to


Social Cost



Relatively low


Marginal benefit vis-à-vis. Marginal Cost

Benefit > Cost

Benefit < Cost (High social cost)

Benefit > Cost


Government’s credibility




Choice of Alternative and Implementation:

We are choosing the third (3rd) alternative which is an extension of the initial plan. The intent is to be able to make the villagers comfortable with the dam and see the economic benefits of this advancement. With more money flowing into the area, they will hopefully be able to think objectively at a later stage. It provides a scope to expand dam capacity to 5700 million cubic feet after 7-10 years. We will provide contractual jobs to the villagers as laborers in the construction of the dam and building of roads who have lost their livelihood. After the completion of dam one person from each family with matric qualification will get a government job, for which the government will provide accessibility to schools in these villages. Further, for every 3 villages government could provide a primary health care center. Since the temple is a popular pilgrimage site for a large number of people and it provides multiple attractions such as fair, dharamshala, suryakund, yagnakund and bhrugukund, it could be developed as a major tourist attraction which could result in an increase in the revenue from tourism for the government.



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