Four States End 50-Year Payment Dispute Over Narmada Dam Project

An agreement has been reached among four Indian states to resolve a decades-long financial dispute related to the Sardar Sarovar Project on the Narmada river. The settlement was signed by the Chief Ministers of Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh, with Union Minister Amit Shah and Union Water Resources Minister CR Patil present.

The dispute, which lasted over 50 years, concerned the sharing of construction and maintenance costs of the Narmada Project and the allocation of water. Under the agreement, the states have made a one-time payment of pending dues to settle the issue.

Amit Shah stated after the signing: 'The dispute over the financial payments under the Narmada award has been resolved consensually by all four states. It is a one-time payment of pending dues.'

Shah credited the resolution to increased cooperation between the central and state governments, noting that many longstanding issues are being sorted through discussion rather than conflict. He said: 'Many longstanding issues that were on standby because of disputes are being sorted through cooperation and not conflict.'

Shah also highlighted broader efforts to enhance water security, including the resolution of water disputes between Rajasthan and Haryana, and the construction of the Kishau dam project. He described the Narmada settlement and the Kishau project as examples of cooperative federalism.

The Sardar Sarovar Project, built on the Narmada river, has been a major source of irrigation, drinking water, and power for parts of Gujarat, Madhya Pradesh, and Rajasthan. Shah noted that limited utilisation of Narmada waters has improved agricultural output in Rajasthan.

Officials termed the agreement as one of the most significant steps in the history of the Narmada project, bringing an end to a financial tussle that had persisted for five decades.