The dispute that had been ongoing for years between Madhya Pradesh, Gujarat, Maharashtra, and Rajasthan regarding the construction cost of the Sardar Sarovar Project and payments related to the Narmada Award finally came to an end. On Tuesday in New Delhi, the Chief Ministers of the four states signed a One-Time Settlement (OTS) agreement in the presence of Union Home and Cooperation Minister Amit Shah and Union Jal Shakti Minister C.R. Patil. With this agreement, the pending financial claims related to the project were finally settled. Amit Shah, calling it a great example of cooperative federalism, said that wherever water is used in any part of the country, its benefit ultimately goes to the farmers and citizens of India. Final settlement of decades-Old financial dispute The agreement was related to the share of the four states in the construction cost of the Sardar Sarovar Project and pending payments under the Narmada Water Disputes Tribunal (Narmada Award). There had been a long-standing dispute regarding the cost sharing and dues of the project. Now all four states have agreed to finally settle all pending claims and dues through a one-time settlement. This is considered a permanent solution to the financial disputes related to the project. The four Chief Ministers signed in New Delhi The agreement was signed by Madhya Pradesh Chief Minister Dr. Mohan Yadav, Gujarat Chief Minister Bhupendra Patel, Maharashtra Chief Minister Devendra Fadnavis, and Rajasthan Chief Minister Bhajanlal Sharma. Union Home Minister Amit Shah, Union Minister of Jal Shakti C.R. Patil, along with senior officials from the Centre and all four states, were also present at the meeting. Amit Shah said – Old disputes are being resolved through cooperative federalism Amit Shah said that under the leadership of Prime Minister Narendra Modi, continuous work is being done towards strengthening water security and promoting cooperative federalism. After the formation of ‘double engine’ governments in many states, coordination among states has increased, due to which many long-pending disputes are being resolved rapidly. He said that this agreement is also a result of the same thinking. ‘Wherever the water goes, the country’s farmer will benefit’ Amit Shah said that whether the water is used in Gujarat, Madhya Pradesh, Rajasthan, or Maharashtra, the beneficiary will be an Indian. He stated that water resources should not be viewed as a subject of political dispute, but as a national asset. If a neighbouring state prospers, its benefits are also received by other states. Sardar Sarovar Project changed the face of many areas The Home Minister said that Madhya Pradesh, Gujarat and Rajasthan have benefited the most from the Sardar Sarovar Project. After the completion of the project, the availability of irrigation, drinking water and electricity has increased in these states. He specifically mentioned Rajasthan, saying that wherever the Narmada water reached, the face of both farming and land changed, and the economic condition of farmers strengthened. Also mentioned the resolution of other water disputes Amit Shah said that the central government is prioritising the resolution of water disputes between states. Referring to the recent resolution of the Haryana-Rajasthan water dispute and the agreement reached on the Kishau Dam project, he said that all these are successful examples of cooperative federalism. He stated that any inter-state dispute harms the country, therefore, timely resolution of such matters is necessary. MP needed 7669 crore rupees, but now will have to pay 550 crore rupees instead Even though an agreement has been reached between the CMs of the four states in Delhi, Madhya Pradesh will suffer financial loss in this. Madhya Pradesh’s demand for compensation for the Sardar Sarovar Dam was 7669 crore rupees. In the current agreement, the government of Madhya Pradesh will have to pay 550 crore rupees to the government of Gujarat. MP needed 7669 crore rupees, but now will have to pay 550 crore rupees instead. Even though in Delhi, Madhya Pradesh’s demand for compensation for the Sardar Sarovar Dam was 7669 crore rupees. In the current agreement, the government of Madhya Pradesh will have to pay 550 crore rupees to the government of Gujarat. Situation changed due to a 58-meter increase in Dam height In 2002, 178 villages of MP (15,625.6 hectares) were in the submergence area of the Sardar Sarovar Dam. In 2019, when the dam filled to its full capacity for the first time, the actual situation came to light. Now, 20,822 hectares of land from 192 villages are submerged. Due to the increase in the dam’s height, more than 5,000 hectares of additional land in Madhya Pradesh got permanently submerged. This was the dispute: The main reason for the Sardar Sarovar dispute is the calculation of compensation. MP has made a revised claim of Rs 7,669 crore based on the 2013 Land Acquisition Act and 2019-20 market rates. Whereas Gujarat insisted on paying Rs 281 crore according to 2001 rates. On the other hand, Gujarat also claimed a liability of Rs 5,516.50 crore on MP, stating it as part of dam construction and maintenance costs, which MP had rejected. Post navigation Policy Reforms and Innovations Bring Positive Transformation in Revenue Administration: Chief Minister Shri Vishnu Deo Sai Ken-Betwa Link Project sparks dramatic protest:Mud-smeared villagers lie on pyres by riverbank; demand fair compensation