Madhya Pradesh, Gujarat, Rajasthan and
Maharashtra signed an agreement in New Delhi resolve a long-pending payment dispute
related to the Narmada Project
¨
Madhya Pradesh, Gujarat,
Rajasthan and Maharashtra signed an agreement in New Delhi on 7 July 2026 to
resolve a long-pending payment dispute related to the Narmada Project.
¨
The agreement covers
cost-sharing issues concerning the Sardar Sarovar Project and the Indira Sagar
Project.
¨
Both projects are
governed by the Narmada Water Disputes Tribunal (NWDT) Award.
¨
The Narmada Water
Disputes Tribunal was constituted under the Inter-State Water Disputes Act,
1956.
¨
The Tribunal adjudicated
disputes related to the Narmada River and determined water allocation, project
construction, and financial obligations among the basin states.
¨
The Sardar Sarovar
Project is a multipurpose river valley project on the Narmada River in Gujarat.
¨
The Indira Sagar Project
is a major reservoir and hydropower project on the Narmada River in Madhya
Pradesh.
¨ Both projects involve
inter-state financial responsibilities and resettlement and rehabilitation
(R&R) obligations.
¨ The agreement settles
issues related to Resettlement and Rehabilitation (R&R) expenditure,
compensation for submerged land, and interest on construction borrowings.
¨ Devendra Fadnavis stated that claims worth ₹2,000–3,000 crore against Maharashtra were waived.
¨ Under the settlement, Maharashtra will pay ₹27 crore.
