Tandula Dam, the third biggest dam ofin Chhattisgarh is located near Balod town. The dam captures a notable position in the history of Chhattisgarh as it was built by British Government in 1921 and therefore it was also the first dam ever built in the state. The major objective behind building it is for ensuring irrigation in 54,000 hectares of land. It was developed in 2 phases under the supervision of British Engineers; 72 km canal was built in the first phase. However the main length of canal is 110 km but if we calculate the total length of its distribution and branch canals, it measures 880 km.
Tandula Dam is also the major reason behind the establishment of Bhilai Steel Plant in Chhattisgarh. The gross storage capacity of the Tandula reservoir is 312.25 million cubic metres and is built in the confluence of Tandula and Sukha Nala rivers.