Panchet Dam is one of the multi purpose dams of the Damodar Valley Corporation. It is 22,155 Ft long and 124 Ft high. Situated 54km from Dhanbad Junction and 9km from Chirkunda on Grand Trunk Road, the spot is highly in demand for picnic. It extends to a length of 6km and is constructed over river Damodar. 40,000 K.W. per hour is the power generated at the hydal station that was constructed on the eastern side of the dam.
Panchet reservoir is on the south of Dhanbad district and north of Purulia district of West Bengal. Asansol is 20km from Panchet Dam while the nearest railway station is Kumardhubi distanced by 10km. Damodar river was highly flood prone. Maithon and Panchet dams have reduced the frequency of floods. Fishes like catla, rohu, mrigal and L. Calbasu are found in Panchet reservoir. It signifies the reproduction of the fishes in the lake.