Machhkund Hydro Electric Scheme was conceived during early 1940's a joint Hydel Project between erstwhile composite State of Madras and State of Orissa on the river Machhkund. It is the first major Hydro electric Project located in the state of Orissa, executed through an inter-state agreement between Orissa and the then Madras Government on 04.01.1945. It was taken up as a joint project between the two states.

As per the terms of the agreement :-

• The execution of the project was entrusted to Madras Government.
• Both the Government have the right to the use of 50% of the ultimate power developed at Duduma falls as well as that developed at each stage.
• Since the state of Orissa was not in a position to utilise its full share, it transferred it's right to use 20% ultimate power to the Govt. of Madras for a period of 99 years from the date of signing of the agreement.
• Sharing of capital cost and the interest during construction was on 30:70 basis between Orissa and Madras Govt. & subsequently between Orissa & AP after formation of AP.
• A supplementary agreement was drawn up between the Orissa & AP,the Govt. of Andhra Pradesh agreed to sell out its share 20% of totoal power generated at Nachhkund at a rate of 8 paisa per Unit to Orissa limiting the total energy that could be drawn by Orissa to 50% of total generation in a year.

IMPORTANT EVENTS