NEW DELHI — The governments of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan signed a memorandum of understanding on Thursday to settle outstanding payments related to the Narmada river‑water projects, officials said. The agreement, reached during a meeting chaired by Union Water Resources Minister Gajendra Singh Shekhawat, aims to clear dues amounting to roughly ₹2,800 crore that have been pending for several years.
Under the pact, each state will contribute its share of the debt incurred for the construction and operation of Narmada canal and hydro‑electric schemes. The states have committed to clear the balance by the end of the 2026‑27 fiscal year, with a staggered payment schedule that will be monitored by a joint oversight committee.
“The Narmada project is a lifeline for irrigation, drinking water and power generation across the region,” Shekhawat said in a statement. “By resolving these financial gaps, we can ensure uninterrupted delivery of benefits to the millions who depend on the river.”
The outstanding dues stem from cost overruns and delayed disbursements that have plagued the Narmada Valley Development Authority (NVDA) since the 1990s. According to the NVDA, the arrears have hindered the timely execution of new phases of the project, including the expansion of the Sardar Sarovar and Indira Sagar reservoirs.
State officials indicated that the agreement includes provisions for interest penalties on overdue amounts and a mechanism for periodic audits. Maharashtra’s water minister, Girish Mahajan, highlighted that clearing the dues will unlock additional central funding for water‑security initiatives in the state.
Analysis:
The pact reflects a coordinated effort by the central and state governments to address long‑standing financial bottlenecks in large‑scale water infrastructure. By committing to a clear repayment timeline, the states may improve their creditworthiness and attract further investment for ancillary projects, such as canal upgrades and hydro‑power generation.
However, the agreement also places considerable fiscal pressure on the four states, each of which faces its own budgetary constraints. Gujarat, for instance, has been grappling with a slowdown in industrial growth, while Madhya Pradesh is contending with a widening fiscal deficit. The success of the pact will depend on the states’ ability to prioritize these payments without compromising other essential expenditures.
The joint oversight committee mandated by the memorandum will be critical in ensuring transparency and accountability. Past delays in fund transfers were often attributed to bureaucratic inertia and inter‑state disagreements over cost allocation. A robust monitoring framework could mitigate these risks and restore confidence among stakeholders, including farmers and power consumers who rely on the Narmada system.
Sources
Indian Express, “Four beneficiary states sign pact on Narmada outstanding dues,” https://indianexpress.com/article/india/four-beneficiary-states-sign-pact-on-narmada-outstanding-dues-10776406/
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Story synopsis gathered from: Indian Express – India — source.
