Answer / daud

when the Vds becomes greater than Vgs-Vt, the channel near drains becomes depleted and effective channel length reduces. This in effect reduces the resistance of channel as the drain voltage increases. This effect is called channel length modulation

Answer / arjun

Ideally, In Saturation region, Ids is independent of Vds.
But the reverse biased junction between the drain and body forms a depletion region of width Ld which increases with Vds(= Vdb).

This increase in the depletion region width will decrease the size of the channel.
L(eff) = L(actual) - Ld.
With the increase in Vds, The effective channel length decreases which means higher current.
This is important because it reduces the gain of the amplifier

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