The town was affected by Bansagar project. Presently the old town is completely submerged under water and its inhabitants have been relocated to a newly developed and planned town called New Ramnagar. The inhabitants of the submerged town were provided monetary compensation and strips of land in the new town. Allegations of forcible acquisition, insufficient and/or delayed compensation in lieu of the land surrendered by the town's inhabitants have been made.
New Ramnagar is connected to other cities through road links. The nearest National Highway is Jabalpur- Allahabad highway which can be accessed from Amarpatan,20 km away from New Ramnagar. The nearest railway links are Maihar and Satna. Rewa at a distance of 60 km is also a convenient railway station.