Decades-old Narmada project financial dispute nearing resolution:₹7,974 crore in pending payments between four states to be settled

Significant progress has been made towards resolving a decades-old financial dispute among Gujarat and three other states over the Sardar Sarovar Project. Union Jal Shakti Minister C.R. Patil announced the development in a post on X. At the 15th meeting of the Review Committee of the Narmada Control Authority (RCNCA), held in New Delhi, a long-pending financial dispute linked to the Sardar Sarovar Project was brought to its final stage of resolution. The meeting was attended by Gujarat Chief Minister Bhupendra Patel, Madhya Pradesh Chief Minister Dr Mohan Yadav, Maharashtra Chief Minister Devendra Fadnavis and Rajasthan Chief Minister Bhajanlal Sharma. Gujarat had outstanding dues of ₹7,974.86 crore The four states namely Gujarat, Madhya Pradesh, Maharashtra and Rajasthan had been locked in a financial dispute for decades over the Sardar Sarovar Narmada Project. The issues included the sharing of construction costs, interest, compensation for submerged land and rehabilitation expenses. According to the Gujarat government, as of 31 July 2025, ₹7,974.86 crore was due to Gujarat from Madhya Pradesh, Maharashtra and Rajasthan. This included ₹5,516.50 crore from Madhya Pradesh, ₹1,883.84 crore from Maharashtra and ₹574.52 crore from Rajasthan. Meanwhile, compensation for land and other properties submerged in Madhya Pradesh due to the Sardar Sarovar Dam had also remained a point of contention. Madhya Pradesh had raised a compensation claim against Gujarat. One-time settlement reached in July 2026 On 7 July 2026, the four states reached a one-time settlement under the mediation of the Union Home Ministry, resolving the financial dispute that had persisted for nearly 50 years. Under the settlement, Madhya Pradesh’s share of rehabilitation costs was reduced from 31.98% to 16.17%, while Maharashtra’s share was fixed at 7.76%. Gujarat, the main beneficiary state, saw its share of the costs increase from 50.57% to 75%. Madhya Pradesh also withdrew its ₹7,669-crore claim against Gujarat, clearing the financial accounts among the four states. Review committee gives final push to settlement The 15th meeting of the Narmada Control Authority’s Review Committee was held in New Delhi. The committee endorsed the agreement reached earlier and emphasised finalising the settlement and completing the outstanding payments within the stipulated deadlines. Union Jal Shakti Minister C.R. Patil announced the development in a post on X. Decision based on agreement reached at July 7 meeting In his post, C.R. Patil said the financial dispute had now been given a final resolution, building on the agreement reached at a meeting held on July 7, 2026, under the chairmanship of Union Home Minister Amit Shah and attended by the chief ministers of all four states. He also stressed the need to clear long-pending payments within a fixed timeframe and ensure effective implementation of the agreement. Step towards resolving differences among four states The Union minister described the development as more than a resolution of outstanding financial dues. He said it marked the beginning of a new era of mutual trust, cooperation and shared development, leaving decades-old differences behind. Patil said the progress had been made possible under the leadership of Prime Minister Narendra Modi and the guidance of Union Home and Cooperation Minister Amit Shah. Chief Minister Bhupendra Patel posted on X. Narmada water should drive development, not disputes C.R. Patil said Narmada water should become a source of prosperity for all four states, farmers’ welfare and the country’s development. He said the development demonstrated that long-pending and complex issues could be resolved through dialogue and mutual agreement in the spirit of cooperative federalism. The agreement has been described as a significant step towards achieving the goal of ‘Viksit Bharat 2047’.