By A decades-old financial dispute linked to the Sardar Sarovar Project on the Narmada River has finally been resolved, with four states reaching a consensus on sharing pending project costs. The agreement, facilitated by Union Home and Cooperation Minister Amit Shah, brings an end to a payment issue that had remained unresolved for more than five decades.
The breakthrough was formalised in the presence of Shah and Union Jal Shakti Minister C.R. Patil, with the Chief Ministers of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan signing the agreement. Officials described the settlement as a significant milestone in inter-state cooperation over one of India’s largest river valley projects.
Addressing the gathering after the signing ceremony, Amit Shah said the states had mutually agreed to settle all pending financial obligations through a one-time payment mechanism. He noted that the resolution had been achieved through dialogue and consensus rather than prolonged legal or administrative disputes.
According to Shah, the agreement reflects the Centre’s continued efforts to encourage cooperative solutions to long-pending issues involving states. He said the government has consistently promoted discussions and consensus-building to strengthen water security and improve coordination among states.
The financial dispute centred on the sharing of construction and maintenance expenses of the Sardar Sarovar Project, along with issues related to water allocation under the Narmada Award. For over 50 years, the four participating states had differed over their respective financial responsibilities connected with the project.
Highlighting the broader significance of the agreement, Shah said the Sardar Sarovar Project has transformed the lives of millions by supplying water for irrigation, drinking purposes and power generation. He noted that the project has played a major role in improving agricultural productivity and water availability across large parts of Gujarat, Madhya Pradesh and Rajasthan.
Referring to Rajasthan, Shah said access to Narmada water has contributed significantly to farming and water security in several regions of the state. He emphasised that effective utilisation of river water benefits not just individual states but the country as a whole.
The Union Minister also cited recent efforts by the Centre to resolve other inter-state water issues, including agreements involving Haryana and Rajasthan as well as progress on the Kishau Dam project. He said these developments demonstrate how cooperation between the Centre and states can deliver solutions to complex and long-standing disputes.
Describing the latest settlement as an example of “cooperative federalism,” Shah said the ability of governments to work together has improved considerably in recent years. He stressed that resolving differences through consultation creates opportunities for faster development and better utilisation of national resources.
Concluding his remarks, Shah urged states to look beyond geographical boundaries while managing water resources. He said that regardless of where the water is used, the ultimate beneficiary is the people of India, making collaboration the most effective path towards sustainable development.
Officials present at the event termed the agreement one of the most significant decisions related to the Sardar Sarovar Project in recent years, saying it clears a major financial hurdle and strengthens cooperation among the participating states.
