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A 'multi-purpose river project' refers to a dam that serves:

AOnly the purpose of hydroelectric power generation
BMultiple purposes such as irrigation, power, flood-control
COnly flood control in a specific river basin
DDrinking water supply to a single state alone
Answer & Solution
Correct answer: B. Multiple purposes such as irrigation, power, flood-control
Multi-purpose river projects integrate irrigation, hydro-power, flood control, drinking water, navigation, and recreation. Bhakra-Nangal, Sardar Sarovar, Tehri are examples.
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