Madhya Pradesh State Tourism Development Corporation (MPSTDC) will develop the reservoir of the Indira Sagar Dam in Khandwa district as a tourist spot. Preparations for the development of islets in the reservoir have been completed.

Resorts will be constructed by MPSTDC at a cost of Rs 15 crore in an area of 9.85 acres. There are 30 permanent islets in the reservoir and the number rises to 150 in the summers when the water level decreases. MPSTDC has prepared a plan to develop tourism spots with public private partnerships (PPP) and tenders have already been floated. Facilities like water sports, swimming pools and children parks will also be developed.