The states of Maharashtra, Gujarat, Rajasthan and Madhya Pradesh on Tuesday signed an agreement to resolve long-pending payment disputes linked to the Sardar Sarovar project on the Narmada river, marking a major step towards settling decades-old issues between the states over sharing of project costs.
A government statement said that the agreement was signed in New Delhi in the presence of Union Home Minister Amit Shah and Union Jal Shakti Minister CR Patel along with the chief ministers of the four states.
The agreement resolves outstanding payment obligations between the four states arising from the Narmada Water Disputes Tribunal ruling, which established the framework for cost-sharing of the Sardar Sarovar project, the statement said. The settlement was reached through a one-time arrangement to settle outstanding receivables.
According to the statement, Shah said the issue of pending payments under the Narmada Award, which remained unresolved for years, has been settled amicably through consensus among the beneficiary countries.
Shah described the agreement as an example of cooperative federalism, under which the Center and states work together to resolve inter-state disputes. Shah said that the Sardar Sarovar Project has brought significant benefits to the states of Gujarat, Madhya Pradesh and Rajasthan by improving access to irrigation water, drinking water and electricity. He added that areas in Rajasthan receiving Narmada water have seen improvements in agricultural prospects and land values.
Shah also cited the recent resolution of the Rajasthan-Haryana water dispute and progress on the Keshaw Dam project as examples of efforts to address water-related disputes through dialogue. He said that water resources ultimately benefit citizens and farmers, regardless of the country in which they are used.
