The chief ministers of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan signed a one-time settlement of outstanding Sardar Sarovar construction-cost dues in New Delhi on July 7, 2026. Home Minister Amit Shah and Jal Shakti Minister C. R. Patil attended.

The Home Ministry described the dispute as one over cost-sharing for construction. That financial relationship is part of a project with distinct water and power functions, rather than a dam serving only the state in which it stands.

Sardar Sarovar Narmada Nigam lists two power stations: a 1,200 MW river-bed powerhouse and a 250 MW canal-head powerhouse. It specifies electricity-benefit shares of 57 per cent for Madhya Pradesh, 27 per cent for Maharashtra and 16 per cent for Gujarat.

Those unequal shares illustrate why the four signatories cannot simply be treated as four equal owners of every benefit. Rajasthan's participation in the wider settlement does not put it in the company's three-state electricity-sharing schedule.

Settling construction contributions addresses the financing side of this inter-state arrangement. Water entitlements, electricity benefits and outstanding payments are separate accounts: agreement on one does not automatically redistribute the others. The July announcement did not disclose state-wise settlement amounts or payment dates.

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