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Centre-brokered Narmada project deal 'overlooks' displaced families' rights

By A Representative
 
The Narmada Bachao Andolan (NBA) has raised serious concerns over the recently reported Centre-mediated settlement of the long-running interstate dispute related to the Sardar Sarovar Project (SSP) on Narmada river, questioning whether the agreement adequately safeguards the financial and rehabilitation rights of Madhya Pradesh and thousands of displaced families.
In a press statement issued from Barwani, the movement demanded that both the Central Government and the Madhya Pradesh Government publicly clarify the details of the settlement, particularly regarding compensation for submerged land, rehabilitation funding and the legal obligations arising from the Narmada Water Disputes Tribunal (NWDT) Award.
According to the NBA, led one of renowned rights defender Medha Patkar, Madhya Pradesh had revised its compensation claim after the height of the Sardar Sarovar Dam was progressively increased from 90 metres to 138.68 metres by 2017, resulting in a significant expansion of the submergence area. 
The organisation said the state's original compensation claim of ₹281.46 crore, prepared when the dam height was limited to 90 metres, no longer reflected the actual extent of damage. Following a reassessment conducted during 2019-20, Madhya Pradesh revised its claim to ₹7,669 crore, covering submerged forests, government land and other public assets. The revised claim was formally submitted to the Gujarat Government on February 10, 2022.
The NBA alleged that Gujarat subsequently informed Madhya Pradesh on March 21, 2024, that it would consider only the original claim of ₹281.46 crore while rejecting the revised demand. The organisation said this ignored the actual losses suffered by the state due to the expanded submergence area.
Apart from compensation for submerged land, the movement stated that the Madhya Pradesh Government had also sought around ₹2,900 crore from Gujarat to complete the rehabilitation of thousands of families who, according to the organisation, are still awaiting land, housing plots, registration of allotted plots, housing assistance and other rehabilitation benefits. The NBA questioned how the state government intends to complete these pending rehabilitation obligations if the requested financial assistance is not received.
The statement referred to media reports suggesting that the interstate dispute had recently been resolved through the mediation of the Union Home Minister and the Union Jal Shakti (Water Resources) Minister. According to the NBA, earlier reports suggested Gujarat would pay around ₹10,000 crore to Madhya Pradesh, while later reports dated June 6, 2026, indicated a figure of ₹7,388 crore, reportedly to be finalised by June 30, 2026. The organisation said the absence of an officially published agreement has created confusion and called upon the governments concerned to release the complete details of the settlement.
The NBA also referred to reports indicating that under a "One Time Settlement", Madhya Pradesh would pay ₹550 crore to Gujarat while Maharashtra would pay ₹27 crore, allegedly due to revised cost-sharing arrangements for the Sardar Sarovar Project. The organisation questioned the basis for these payments and sought clarification on how the overall project cost had risen over the decades from initial estimates of around ₹4,200 crore in the early 1980s to figures reportedly exceeding ₹75,000 crore, with some former officials estimating costs at over ₹90,000 crore. It also questioned whether expenditures associated with the Statue of Unity and tourism infrastructure had been included in the project's financial calculations.
According to the statement, although nearly 50,000 affected families across Madhya Pradesh, Maharashtra and Gujarat have received rehabilitation benefits over the past four decades, several thousand families continue to remain deprived of full rehabilitation. The organisation claimed that these include tribal communities, Dalits, landless labourers, potters, boatmen and fisherfolk who continue to await their legal entitlements. It further alleged that revised backwater level assessments carried out in 2023 resulted in thousands of families being declared ineligible for rehabilitation despite earlier claims.
The NBA also said Maharashtra has sought more than ₹1,313 crore as compensation for submerged forest land covering approximately 6,488 hectares, around ₹300 crore for pending rehabilitation works and additional compensation for reduced power benefits originally envisaged under the project. It further raised concerns over rehabilitation delays in Maharashtra and questioned proposals related to diversion of Narmada waters towards the Tapi basin.
The movement argued that under the provisions of the Narmada Water Disputes Tribunal Award and subsequent Supreme Court judgments, Gujarat bears legal responsibility for meeting the costs associated with land acquisition and rehabilitation in the affected states. It maintained that these legal obligations cannot be overridden by administrative settlements and urged both the Centre and the concerned state governments to uphold the rights of displaced persons.
The NBA demanded that the Madhya Pradesh Government publicly disclose the complete details of the Centre-mediated settlement, continue pursuing its revised compensation claim of ₹7,669 crore, secure financial support for the pending ₹2,900 crore rehabilitation programme, ensure full and lawful rehabilitation of all eligible displaced families and take all available legal and constitutional measures if the state's financial and rehabilitation rights are compromised.
The press statement was issued by NBA representatives Medha Patkar, Rahul Yadav, Rajkumar Sinha, Gokhru Mangalya, Shobharam Solanki and Omprakash Patidar.

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