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In 1840 Cautley proposed construction of Ganges Canal at Bhimgoda Haridwar on the name of irrigation. This project was sanctioned in 1841, but the work was not begun till 1843, and even then Cautley found himself hampered in its execution by the opposition of Lord Ellenborough. Digging of the canal began in April 1842. He was opposed by Hindu religious leaders in the leadership of Madan Mohan Malaviya who founded Ganga Mahasabha in 1905 to protect Ganges for future obstructions, who felt that the waters of the holy river Ganges would be imprisoned but Cautley pacified them by agreeing to leave a gap in the dam from where the water could flow unchecked. They agreed on an agreement which is known as Agreement of 1916.
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