The governments of Madhya Pradesh, Gujarat, Rajasthan, and Maharashtra signed a landmark agreement on 7 July 2026 in New Delhi to resolve a long-pending financial dispute related to the Narmada river projects. The agreement settles cost-sharing issues concerning the Sardar Sarovar Project and the Indira Sagar Project, implemented under the Narmada Water Disputes Tribunal Award.
The settlement addresses pending payments related to Resettlement and Rehabilitation (R&R), compensation for submerged land, and interest on construction borrowings among the participating states. According to Maharashtra Chief Minister Devendra Fadnavis, claims worth ₹2,000–3,000 crore against the state were waived, with Maharashtra agreeing to pay ₹27 crore under the final settlement.
The Narmada Water Disputes Tribunal, constituted under the Inter-State Water Disputes Act, 1956, had laid down guidelines for water sharing, project construction, rehabilitation, and financial obligations among the basin states.
The agreement was signed in the presence of Union Home Minister Amit Shah and Union Jal Shakti Minister C.R. Patil, marking another significant step toward cooperative federalism and the peaceful resolution of inter-state water-related issues. The pact follows recent agreements on the Yamuna Water Project and the Kishau Multipurpose Project, reflecting growing collaboration among states in managing India’s vital water resources.
