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Itarsi Junction is one of the busiest railway junctions in India. It has been a major rail junction since 1867 when it was first connected to Jabalpur and Nagpur by metre gauge lines, later extended to Khandwa and Mumbai. The railways have been instrumental in connecting Itarsi with other parts of Madhya Pradesh as well as other states such as Maharashtra, Uttar Pradesh, Chhattisgarh etc., making it an important industrial hub for central India. The city is situated on the banks of Tawa Reservoir which supplies water for irrigation purposes from Narmada River through Tawa Canal . The reservoir also provides drinking water supply to nearby areas including Bhopal . The town has two sugar factories - Shree Renuka Sugars Ltd (SRSL) & MP Sugar Industries Ltd (MPSIL). SRSL started its operations in 1978-79 at a cost of Rs 2 crore while MPSIL started its production during 1984-85 at a cost Rs 1 crore only.