NEW DELHI: The governments of Madhya Pradesh, Gujarat, Rajasthan and Maharashtra on Tuesday signed an agreement to settle a decades-old dispute over compensation and rehabilitation linked to the Narmada River project, including payments related to land acquired and the displacement of people in submergence areas.
The agreement, signed by the chief ministers of the four states in the presence of Union Home Minister Amit Shah, resolves pending payment issues concerning beneficiaries covered under the Narmada award.
Describing the pact as a significant step, Shah said the agreement marks a historic milestone in resolving long-standing inter-state disputes over the cost-sharing arrangements for the Sardar Sarovar Project. He said the pending financial liabilities have been settled through a one-time payment mechanism.
Shah attributed the resolution to improved cooperation among states, saying that the formation of “double-engine” governments under the leadership of Prime Minister Narendra Modi had helped reduce political differences and facilitated the settlement of several long-pending issues.
He also commended the four state governments for building consensus on the project, noting that the Sardar Sarovar Project has brought substantial benefits to Madhya Pradesh, Gujarat and Rajasthan by expanding access to irrigation, drinking water and electricity.
Referring to Rajasthan, Shah said that although the state’s share of Narmada waters may appear relatively modest, the regions that have received the water have seen a significant improvement in agricultural productivity, land values and farmers’ livelihoods.
He cited the agreement, along with the resolution of the Kishau Dam project dispute between Haryana and Rajasthan, as examples of cooperative federalism.
