Date: 2026-07-07Category: Press ReleaseState: Union GovernmentCountry: India
A historic agreement was reached in the presence of Union Home Minister and Minister of Cooperation Shri Amit Shah on the settlement of pending payment issues among the Narmada Award beneficiary States of Maharashtra, Gujarat, Rajasthan and Madhya Pradesh
**Executive Summary**
On July 7, 2026, a historic agreement was signed in New Delhi to resolve decades-old financial disputes among the Narmada Award beneficiary states of Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh. The settlement addresses long-standing cost-sharing issues related to the construction of the Sardar Sarovar Project through a definitive one-time payment arrangement. This initiative, overseen by the Union Home Minister and the Minister of Jal Shakti, aims to strengthen water security and promote cooperative federalism.
**Key Points / Main Content**
**Settlement of Financial Disputes**
* The agreement provides a final resolution for pending payment issues regarding the cost-sharing arrangements of the Sardar Sarovar Project.
* All outstanding dues among the four beneficiary states—Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh—will be cleared via a one-time settlement.
* The resolution marks the end of a dispute that had remained unresolved for several decades.
**Strategic and Political Framework**
* The agreement is presented as a "shining example" of cooperative federalism, emphasizing national interest over regional political differences.
* The "double-engine government" model in several states is credited with accelerating the resolution of these long-pending inter-state disputes.
* The Union government highlighted that resolving such disputes prevents "national loss" and ensures that water resources benefit Indian citizens regardless of state boundaries.
**Project Benefits and Water Security**
* The completion of the Sardar Sarovar Dam has successfully delivered water and electricity to every part of the beneficiary states.
* In Rajasthan specifically, the influx of Narmada waters has transformed the fortunes of farmers and significantly increased land values.
* The agreement follows other recent successes in the water sector, including resolutions for the Kishau Dam Project and the Rajasthan-Haryana water dispute.
**Impact Analysis**
**State Governments of Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh**
**Impact**
These states are affected by the formalization of cost-sharing obligations and the resolution of long-term liabilities. The agreement removes the political and financial friction caused by decades of pending dues.
**Action Required**
The state administrations must facilitate the one-time settlement payments and adhere to the final terms of the cost-sharing arrangement as signed in New Delhi.
**Farmers and Local Residents**
**Impact**
As the primary beneficiaries, they gain from the stabilized management of the Sardar Sarovar Project, ensuring continued access to water for irrigation and electricity. This supports increased agricultural productivity and land valuation.
**Action Required**
No direct action is required from this group, as they are the recipients of the project’s infrastructure benefits.
**Union Government (Ministry of Home Affairs and Ministry of Jal Shakti)**
**Impact**
The Central Government acts as the mediator and guarantor of the agreement, reinforcing its role in promoting water security and inter-state cooperation.
**Action Required**
The Ministries must continue to oversee the implementation of the settlement and apply this cooperative model to resolve remaining water-related disputes across the country.
Key Entities Referenced
Narmada Award: The legal framework and award concerning the distribution of water and related payment obligations among beneficiary states.
Sardar Sarovar Project: The primary inter-state water project for which cost-sharing arrangements and pending construction dues were settled.
Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh: The four beneficiary states central to the agreement regarding the settlement of pending water-related payment issues.
Ministry of Home Affairs: The primary ministry responsible for mediating and facilitating the resolution of the decades-old inter-state dispute.
Kishau Dam Project: A referenced multi-purpose project cited as an example of successful inter-state cooperative federalism and water dispute resolution.
Ministry of Home Affairs
A historic agreement was reached in the
presence of Union Home Minister and Minister of
Cooperation Shri Amit Shah on the settlement of
pending payment issues among the Narmada
Award beneficiary States of Maharashtra,
Gujarat, Rajasthan and Madhya Pradesh
Under the leadership of Prime Minister Shri Narendra Modi,
several historic initiatives have been undertaken to
strengthen water security and promote cooperative
federalism in the water sector
On the initiative of the Union Home Minister, a decades-old
dispute among Maharashtra, Gujarat, Rajasthan and Madhya
Pradesh was resolved amicably
Under the leadership of Prime Minister Shri Narendra Modi,
the formation of double-engine governments in several
States has expedited the resolution of many such long-
pending disputes
Regardless of which part of the country the water is utilized
in, the ultimate beneficiary will be an Indian
Whether it is the issue of the Kishau Dam Project, the water
dispute between Rajasthan and Haryana, or today's
agreement, all these are shining examples of cooperative
federalism
प्रव तथ: 07 JUL 2026 8:22PM by PIB Delhi
A historic agreement has been reached in the presence of Union Home Minister and Minister of
Cooperation Shri Amit Shah on the settlement of pending payment issues among the Narmada Award
beneficiary States of Maharashtra, Gujarat, Rajasthan and Madhya Pradesh.In the presence of Union Home Minister and Minister of Cooperation Shri Amit Shah and Union Minister
of Jal Shakti Shri C. R. Patil, Chief Minister of Maharashtra Shri Devendra Fadnavis, Chief Minister of
Gujarat Shri Bhupendra Patel, Chief Minister of Rajasthan Shri Bhajan Lal Sharma and Chief Minister of
Madhya Pradesh Dr. Mohan Yadav signed the agreement in New Delhi today. Senior officials from the
Central Government and all four States were also present at the meeting.
This agreement marks a historic milestone in resolving the long-standing disputes among the States of
Madhya Pradesh, Gujarat, Rajasthan and Maharashtra relating to the cost-sharing arrangements for the
construction of the Sardar Sarovar Project. Under the agreement, the payments to be made towards the
final settlement of pending dues have been resolved through a one-time settlement.
Union Home Minister and Minister of Cooperation Shri Amit Shah said that the issue of pending
payments under the Narmada Award had remained unresolved among Maharashtra, Gujarat, Rajasthan and
Madhya Pradesh for a long time, and that it has been resolved amicably today.
Shri Amit Shah said that under the leadership of Prime Minister Shri Narendra Modi, several historic
initiatives have been undertaken to strengthen water security and promote cooperative federalism in the
water sector. He said that the formation of double-engine governments in several States under the
leadership of Prime Minister Modi has enhanced the ability to understand one another, reduced political
differences, and accelerated the resolution of many long-pending disputes across the country.
Union Home Minister and Minister of Cooperation Shri Amit Shah appreciated the constructive
cooperation extended by the Governments of Madhya Pradesh, Gujarat, Rajasthan and Maharashtra in
building a broad consensus on this important inter-State project. Shri Shah said that the project has
immensely benefited Madhya Pradesh, Gujarat and Rajasthan in particular. He said that with the
completion of the dam, water and electricity have reached every part of these States. He further said that
while the benefits accruing to Rajasthan may appear modest at first glance, the areas that have received
Narmada waters have witnessed a transformation in both the value of the land and the fortunes of the
farmers.
Union Home Minister and Minister of Cooperation Shri Amit Shah said that under the leadership of Union
Minister of Jal Shakti Shri C. R. Patil, water-related disputes and issues concerning water distribution
across the country are being resolved one by one. He said that the water dispute between Haryana and
Rajasthan was resolved recently. Shri Shah said that whether it is the issue of the Kishau Dam Project, the
water dispute between Rajasthan and Haryana, or today's agreement, all these are shining examples of
cooperative federalism. He said that whether it is Gujarat, Madhya Pradesh, Rajasthan, Haryana orMaharashtra, the water ultimately serves the people of the country, especially the farmers. Shri Shah
further said that regardless of which part of the country the water is utilized in, the ultimate beneficiary
will be an Indian.
Union Home Minister and Minister of Cooperation Shri Amit Shah said that the necessary steps should be
taken to resolve any dispute by keeping in mind the national loss caused by it. He said that if a
neighbouring State prospers, the benefits of that prosperity also accrue to one's own State.
****
RK/PR/PS
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