In its first meeting held in 2000 the Committee unilaterally concluded, in the absence of the NBA, that there was no alternative to the dam. The NVDA announced the rehabilitation package in the year 2000, which was not accepted by the affected people. However, the project authorities initiated the process of land acquisition, and compensation for the people of most of the affected villages were finalized.
The Chief Minister of the state laid the foundation stone for the construction of the dam in June 2003 and the contract for the construction was awarded in October 2003 (even before the award of compensation was announced). However, actual work was delayed due to opposition of the villagers, who were insisting on a review of the project proposal and finding alternatives or to provide at least 2 ha of irrigated land in the Upper Veda Command area for all the affected people.
The NBA had also filed a Public Interest Litigation (PIL) in the High Court of Madhya Pradesh demanding settlement of compensation before the construction of the dam. The government initiated steps to resolve the conflict through awareness program, and communicating the real picture regarding the compensation to the affected people. However, conflict continued since the affected people remained dissatisfied with the government proposal.