As a result of the catastrophic flood of 1943, the Governor of Bengal appointed the Damodar Flood enquiry committee to suggest remedial measures. It suggested creation of an authority similar to that of the Tennessee Valley Authority in the United States. W.L.Voorduin, senior engineer of TVA prepared a preliminary report wherein he submitted an outline of a plan designed for achieving flood control, irrigation, power generation and navigation. As a result, Damodar Valley Corporation came into existence in 1948 for development and management of the basin as a whole. While Voorduin envisaged the construction of eight dams and a barrage but it was later decided to have only four dams at Tilaiya, Konar, Maithon and Panchet, and Durgapur Barrage.
The first dam was built across the Barakar River at Tilaiya and inaugurated in 1953. The second dam across the Konar River was inaugurated in 1955. The third dam across the Barakar at Maithon was inaugurated in 1957. The fourth dam across the Damodar at Panchet was inaugurated in 1959.