The project aims at conserving water in the Yamuna floodplains and creating a mega reservoir between Palla and Wazirabad to deal with the water shortage in the city, particularly during the summer months.
Under the project, small ponds will be created to catch water from an overflowing Yamuna during this monsoon season.
According to the committee's report, the government will pay ₹77,000 per acre to farmers willing to lease their land for the project.
In a statement, the Delhi government said, "It was not possible for such an ambitious and huge project to take off without the personal constant monitoring of Chief Minister Arvind Kejriwal."
The chief minister had given one month's time to the irrigation and flood department to make preparations for the project. Kejriwal had earlier said the project has the "potential" for ending Delhi's water shortage.
Kejriwal, who has been critical of Prime Minister Narendra Modi, thanked Shekhawat for the Centre's quick approval.