Current context: On 7 July 2026, the governments of Madhya Pradesh, Gujarat, Maharashtra, and Rajasthan signed a historic agreement to resolve the decades-old Narmada Project payment and cost-sharing dispute. The pact was signed in the presence of Union Home Minister Amit Shah and Union Jal Shakti Minister C. R. Patil.
- The agreement settles the long-pending outstanding dues arising from the Narmada Water Disputes Tribunal (NWDT) Award and the Sardar Sarovar Project, ending nearly five decades of financial disagreements among the beneficiary states.
- The primary objective is to resolve disputes related to cost-sharing, pending payments, land compensation, rehabilitation, and resettlement of people affected by the Narmada Project through a one-time settlement.
- The pact promotes cooperative federalism by enabling the Centre and states to resolve complex inter-state issues through dialogue and consensus instead of prolonged litigation.
- The settlement is expected to accelerate the implementation of the Sardar Sarovar Project, ensuring better delivery of irrigation, drinking water, and hydroelectric power to the beneficiary states.
- The agreement also provides greater financial clarity by clearing outstanding liabilities and reducing future disputes over project-related payments and rehabilitation expenses.
- The Narmada Project is one of India's largest multipurpose river valley projects, designed to provide irrigation, drinking water, flood control, and hydroelectric power across western India.
Question:
Q1. The four-state agreement signed on 7 July 2026 regarding the Narmada Project was primarily aimed at:a) Revising the Narmada River water-sharing formula
b) Resolving the long-pending payment and cost-sharing dispute under the Narmada Project
c) Constructing a new dam on the Narmada River
d) Establishing a new inter-state river authority
Answer: b)To resolve the decades-old payment, cost-sharing, rehabilitation, and compensation issues related to the Narmada Water Disputes Tribunal Award and the Sardar Sarovar Project.
