The Chandil Dam is located in Chandil, 30 km from the industrial city of Jamshedpur and 105 km from the state capital, Ranchi. The Subernarekha Multipurpose Project (SMP) is a joint venture between the governments of Jharkhand, Odisha, and West Bengal. A Tripartite Agreement (TPA) was signed between the Chief Ministers of Bihar (before the formation of Jharkhand), West Bengal, and Odisha in New Delhi on August 7, 1978. For the project, land was acquired from local inhabitants, and the construction of the Chandil Dam began in 1982-83. However, construction was halted on several occasions due to opposition from landowners against land acquisition. As part of the dam’s construction, the government acquired 116 villages, covering around 43,500 acres of land between 1986-87. Despite this, displaced villagers have yet to receive adequate compensation. Approximately 12,000 families were potentially displaced.

Opposition from landowners began in 1972 when the project was initially conceptualized. In January 1979, thousands of tribal people held a protest demonstration at the dam site. Police fired at the agitating protesters, resulting in the deaths of four individuals. Since then, villagers have consistently protested for fair rehabilitation and compensation.

The project has also faced allegations of financial corruption, irregularities, and mismanagement. It received a fresh boost when the World Bank sanctioned $127 million in assistance, but this funding was withdrawn in 1990 due to ongoing protests. The government of undivided Bihar halted work, leading to a paralysis of the project until 1998.

The protest gained momentum with the formation of an organization called Visthapiti Mukti Vahini (VMV). VMV has continually advocated for an increase in the rehabilitation package, adjusted annually based on relevant indices. In 2010, VMV successfully prevented the submergence of 52 villages by blocking a proposed 5-meter increase in the dam’s height.

Another long-term achievement of VMV’s efforts has been the initiation of several livelihood opportunities for local families in and around the Chandil Dam reservoir. Once displaced from their land and water, local people are now building a hopeful and self-reliant future through VMV’s initiatives that engage positively with government mechanisms. These initiatives include cage culture, fish and geese farming, livestock breeding, horticulture, lacquer/shellac agriculture, and tourism development through boating, creating sustainable livelihood opportunities for many.