Dams are called multi-purpose projects because:
(1) Earlier they were built to impound rivers and rainwater could be used later for irrigation.
(2) Now, dams are built not only for irrigation but for generation of electricity, water supply for domestic use, flood control, recreation, inland navigation and fish-breeding.
(3) Thus, they are called multi-purpose projects.
(4) For example, in the Sutlej-Beas river basin, the Bhakra-Nangal project water is being used both for hydelpower production and irrigation.
