Punjab Escalates Water Dispute with Formal Rs 1.44 Lakh Crore Demand from Rajasthan
In a major development that could reshape inter-state water relations in northern India, the Punjab government has formally demanded a staggering Rs 1.44 lakh crore from Rajasthan for river water supply dating back to 1961. This unprecedented move comes just one day after Chief Minister Bhagwant Mann warned of escalating the long-standing issue beyond political rhetoric.
Historic Agreement Forms Basis of Demand
The formal demand was communicated through a letter sent by Punjab's Water Resources Secretary Krishan Kumar to his Rajasthan counterpart on Thursday. This marks the first time Punjab has issued such a formal demand to its neighboring state, moving beyond mere political statements into concrete legal territory.
The letter meticulously references the 1920 agreement for the supply of Satluj waters to what was then the State of Bikaner. According to Punjab's interpretation, Clause 13 of this century-old agreement explicitly stipulated payment of "seigniorage" (a form of royalty) for water supplied. The original rate was established at one-tenth of the average water rate, creating what Punjab argues is a legally binding financial obligation that has never been formally rescinded.
Historical Context and Legal Arguments
Punjab's position is strengthened by several historical precedents and legal interpretations:
- Rajasthan was paying these charges to Punjab until the Indus Water Treaty was finalized in 1960
- The inter-state ministerial meeting held on January 29, 1955, specifically mentioned that "the question of allocation of the cost of water including the cost of storages and other works may be taken up separately"
- It was through this 1955 meeting that 8.0 MAF water out of 15.85 MAF was allocated to Rajasthan
The letter presents a compelling territorial argument, stating that the Sutlej, Ravi, and Beas rivers flow entirely within Punjab's territory. "None of the Punjab rivers are inter-state rivers as duly acknowledged by the central government while adding Section 14 to the Water Disputes Act 1956," the letter asserts. "Thus it is clear that the water is being released to Rajasthan out of the Punjab rivers."
Revenue Sharing Justification and Political Context
Punjab's demand gains additional weight from the revelation that Rajasthan currently charges its own internal entities, including refineries, for water that it receives free of cost from Punjab. "This further justifies the sharing of this revenue with Punjab," the letter argues, presenting a strong case for equitable distribution of benefits derived from the water supply.
While the previous SAD-BJP administration passed a resolution for royalty in 2016, no formal demand was ever served to Rajasthan until now. This current move represents a significant strategic shift, moving the spotlight away from the contentious Sutlej-Yamuna Link (SYL) canal dispute with Haryana and opening a completely new front in regional water politics.
The timing of this formal demand suggests a calculated escalation by the Punjab government, potentially setting the stage for prolonged legal and political negotiations between the two states. The sheer magnitude of the claimed amount—Rs 1.44 lakh crore—makes this one of the largest inter-state financial disputes in India's history, with implications that could extend far beyond the immediate parties involved.
