The India's ambitious Rs 9,393 crore Ken-Betwa river interlinking project will impact very significantly on Socio-economic life of two million people of Bundelkhand region, India. Water is an important input for survival and sustenance of life. The demand of this natural gift has been increasing exponentially. This ambitious project will help us in irrigation, potable water, cheap transportation, electricity as well as a source of livelihood for our ever increasing population. In Bundelkhand region, there is a severe problem of lack of irrigation in one region and water logging in others. Damage to crops due to drought and pitiable drainage facility could be managed. The objectives of the paper are to study socio-economical issues and environmental challenges in Ken-Betwa River link in India and to study environmental impact of this Project.