Four States Settle Decades-Old Narmada Payment Dispute in One-Time Agreement

In a significant breakthrough, the states of Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh have reached a final settlement on long-pending payment issues related to the Narmada Award. The agreement, signed on Tuesday (July 7, 2026), resolves cost-sharing arrangements for the construction of the Sardar Sarovar Project, a key component of the Narmada Valley Development Plan.

The pact was signed in the presence of Union Home Minister Amit Shah and Union Minister of Jal Shakti C.R. Patil, alongside the Chief Ministers of the four states: Devendra Fadnavis (Maharashtra), Bhupendra Patel (Gujarat), Bhajan Lal Sharma (Rajasthan), and Mohan Yadav (Madhya Pradesh). The settlement follows a one-time payment mechanism aimed at clearing dues that had accumulated over years.

Mr. Shah noted that the issue had remained unresolved for an extended period but was now amicably settled. He highlighted that the completion of the Sardar Sarovar Dam has enabled water and electricity to reach various parts of the four states, transforming agricultural productivity and land values. He added that while Rajasthan's direct benefits may appear modest, areas receiving Narmada waters have witnessed substantial improvement in both land value and farmer incomes.

The Union Home Minister underscored that water from the project ultimately serves the people of the country, particularly farmers, regardless of which state utilises it. The agreement is seen as a step towards cooperative federalism in managing inter-state river resources.

The Narmada Award, pronounced in 1978, allocates the waters of the Narmada River among the four states. The Sardar Sarovar Project, one of the largest dams in India, has been a subject of debate over environmental and social costs but remains central to water and power supply in the region.