A historic agreement was reached among the Narmada Award beneficiary states of Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh to settle long-standing pending payment issues related to the Sardar Sarovar Project. The settlement was signed in the presence of Union Home Minister and Minister of Cooperation Shri Amit Shah and Union Minister of Jal Shakti Shri C. R. Patil, with the Chief Ministers of all four states—Shri Devendra Fadnavis (Maharashtra), Shri Bhupendra Patel (Gujarat), Shri Bhajan Lal Sharma (Rajasthan), and Dr. Mohan Yadav (Madhya Pradesh)—participating in the signing ceremony in New Delhi on July 7, 2026.
The agreement resolves decades-old disputes among the states concerning cost-sharing arrangements for the construction of the Sardar Sarovar Project through a one-time settlement of pending dues. Union Home Minister Amit Shah emphasized that this resolution represents a significant milestone in promoting cooperative federalism in the water sector, noting that the project has immensely benefited Madhya Pradesh, Gujarat, and Rajasthan particularly through water availability and electricity generation.
Shah highlighted that areas in Rajasthan receiving Narmada waters have witnessed transformation in land values and farmer prosperity, despite what might appear as modest benefits at first glance. The settlement follows similar recent resolutions including the Kishau Dam Project and the water dispute between Rajasthan and Haryana, all presented as examples of the current government's approach to resolving inter-state disputes through cooperative federalism.
The Union Home Minister stressed that regardless of which part of the country utilizes water resources, the ultimate beneficiary remains Indian citizens, particularly farmers. He advocated for resolving disputes by considering national interests rather than regional differences, noting that prosperity in neighboring states ultimately benefits all states through economic spillover effects.