
Context
A historic agreement has been signed by Gujarat, Madhya Pradesh, Maharashtra and Rajasthan to settle long-pending financial disputes between various States under the Narmada Water Disputes Tribunal (NWDT) Award, a positive move towards cooperative federalism and efficient inter-state water governance.
Key Highlights
- The Governments of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan have joined hands to resolve the long-pending dues of Narmada Water Disputes Tribunal (NWDT) Award.
- Both Mr. Amit Shah and C. R. Patil witnessed the signing of an agreement.
- It settles decades old issues related to cost sharing, rehabilitation expenses and compensation costs associated with the big projects under Narmada basin.
Background
- Narmada Water Disputes Tribunal (NWDT) was established in 1969 through Inter-State River Water Disputes Act, 1956.
- The Award was given by the Tribunal in 1979 dividing the waters of the Narmada river among Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.
- It also decided on the sharing of the energy produced by the Sardar Sarovar Dam and its powerhouses.
What Were the Pending Issues?
- Cost sharing for Sardar Sarovar Project.
- Financial commitments for Indira Sagar Dam Project.
- Cost of displaced families’ Resettlement and Rehabilitation (R&R).
- Land compensation for losses due to submergence.
- Capitalization of interest expense incurred while constructing the project.
Significance of the Agreement
- Strengthening Cooperative Federalism
- Applies consensus-based solutions to resolving complicated interstate disputes.
- Strengthens the principle of co-governance between the Union and State Governments.
- Better Water Governance
- Eliminates financial risk to long-term river basin management.
- Enables more efficient implementation and operation of projects involving interstate water.
- Agricultural Development
- Narmada water has led to increased irrigation facilities.
- Better water supply has led to higher agricultural production and rural living standards, especially in water-stressed areas.
- Energy Security
- Clears up financial liabilities associated with hydropower generation.
- Promotes effective utilization of electricity produced by multipurpose river valley projects.
- Improved Centre-State Coordination
- Emphasizes the importance of institutional conversation in the peaceful settlement of the long-delayed disputes.
Constitutional and Legal Framework
- According to Article 262, Parliament can try cases on inter-state rivers.
- Water dispute tribunals are established under the provisions of the Inter-State River Water Disputes Act, 1956.
- The Inter-State River Water Disputes (Amendment) Act, 2019 aims to facilitate the resolution of disputes promptly by establishing a permanent mechanism of a tribunal.
Challenges
- Interstate water disputes could become more severe in the future due to climate change and erratic rainfall.
- Greater demand for water for irrigation, drinking and industry will put further stress on river basins.
- Implementing rehabilitation commitments remains crucial.
- River basin management is a dynamic process that needs continuous collaboration between states.
Way Forward
- Improve the scientific planning of integrated river basin management.
- Encourage the use of water resources through micro-irrigation and modern farming methods.
- Make sure that tribunals’ decisions are complied with promptly to prevent unnecessary conflict.
- Improve data sharing and interinstitutional collaboration between riparian states.
- Ensure that ecological needs are met and that river resources are used sustainably, while meeting developmental needs.
Conclusion
- The resolution of Narmada Water Disputes Tribunal Award is a significant step in water governance in India.
- The agreement, reached through dialogue and consensus rather than conflict, reinforces cooperative federalism, facilitates interstate coordination, and promotes sustainable management of one of India’s most important river systems, which has been the result of decades-long financial disputes.
- The Narmada settlement provides an important study of how inter-state river issues can be resolved by institutional cooperation and constitutional processes in the future.
Source: The Indian Express
Prelims PYQ
Q. The Narmada River flows to the west, while most other large peninsular rivers flow to the east. Why? (2013)
- It occupies a linear rift valley.
- It flows between the Vindhyas and the Satpuras.
- The land slopes to the west from Central India.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) None



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