Dear Rehana, there is no proof that Ram existed. The story of his birth cannot be true (like that of Jesus Christ). Even if he existed, he was a Noble King. The author gave him a larger than life image and made almost a model person.
However as a mark of tolerance, let the hindus believe in him (just like the followers believing in their respective gods or prophets)rather than abusing their faith.
Apart from faith, the Project is technically and economically viable. The same will benefit only the dredging companies and those who can get kick-back!!!!