Four Indian States Settle Decades-Old Narmada Project Disputes

The governments of Madhya Pradesh, Gujarat, Rajasthan, and Maharashtra signed a comprehensive agreement in New Delhi on July 7, 2026, to resolve decades-old disputes over the Narmada Project and Sardar Sarovar Project. Facilitated by Amit Shah and Union Jal Shakti Minister C.R. Patil, the deal addresses pending cost-sharing arrangements, land acquisition, and rehabilitation expenditures outlined in the 1979 Narmada Water Disputes Tribunal award.

The settlement utilizes a one-time payment system to clear outstanding dues. Madhya Pradesh will pay 217 crore rupees to Gujarat, a significant reduction from a previous 1,500 crore rupee liability after Gujarat agreed to increase its share of resettlement costs from 50 percent to 75 percent. Maharashtra saw its outstanding claims of 2,000 to 3,000 crore rupees waived, leaving the state with a remaining liability of only 27 crore rupees.

Regarding water rights, the agreement grants Maharashtra access to 10 TMC of water through alternative means because geographical constraints prevented its original entitlement. This includes 5 TMC via the Narmada-Tapi diversion scheme and 5 TMC lifted from the Ukai dam during the monsoon season, a move Gujarat approved in principle to benefit north Maharashtra districts. Rajasthan also settled its cost-sharing obligations as part of the broader agreement to end long-standing litigation.