Sardar Sarovar Project: MP's Rehabilitation Dues To Gujarat Reduced To ₹231.80 Crore From ₹1,500 Crore

Sardar Sarovar Project: MP's Rehabilitation Dues To Gujarat Reduced To ₹231.80 Crore From ₹1,500 Crore

When the dam height was increased to 58 metres, an additional 5,000 hectares of land in the state were submerged, taking the number of affected villages to 192. Based on the overall rehabilitation assessment, Madhya Pradesh had staked its claim for Rs 7,669 crore in compensation from Gujarat, the main beneficiary of the project.

Staff ReporterUpdated: Wednesday, July 08, 2026, 11:25 PM IST
Sardar Sarovar Project: MP's Rehabilitation Dues To Gujarat Reduced To ₹231.80 Crore From ₹1,500 Crore
Sardar Sarovar Project: MP's Rehabilitation Dues To Gujarat Reduced To ₹231.80 Crore From ₹1,500 Crore | FP photo

Bhopal (Madhya Pradesh): Madhya Pradesh will now pay only Rs 231.80 crore towards the rehabilitation cost of the Sardar Sarovar project, instead of around Rs 1,500 crore, following a decision taken at a meeting chaired by Union Home Minister Amit Shah in New Delhi on Tuesday.

The Attorney General of India had opined that the rehabilitation cost should be shared among the four partner states - Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

At the meeting in Delhi, it was decided to reduce Madhya Pradesh's share of the rehabilitation cost from the proposed 31.98% to 16.17%. As a result, the state will now pay only Rs 231.80 crore to Gujarat, Chief Minister Mohan Yadav said on Wednesday.

The four states on Tuesday signed an agreement to resolve payment disputes linked to the Sardar Sarovar project on the Narmada River that had remained pending for more than three decades.

Under the revised cost-sharing formula, Gujarat's share of the rehabilitation expenditure has been increased from 50.57% to 75%, while Maharashtra's share has been reduced from 15.15% to 7.76% and Rajasthan's from 2.31% to 1.17%.

As per the agreement, Madhya Pradesh has to shelve its claim seeking Rs 7,669 crore as compensation from Gujarat under rehabilitation. Of the total land affected by the project, the maximum area was in Madhya Pradesh. The submerged area included forest land and 178 villages.

Percentage-wise, 55% of the land affected by the project among the partner states was in Madhya Pradesh.

When the dam height was increased to 58 metres, an additional 5,000 hectares of land in the state were submerged, taking the number of affected villages to 192.

Based on the overall rehabilitation assessment, Madhya Pradesh had staked its claim for Rs 7,669 crore in compensation from Gujarat, the main beneficiary of the project.

When asked by the media about the pending rehabilitation work, MSME minister Chetanya Kasyap said the state government would undertake it on its own.

Partner state

Earlier share

Revised share

Gujarat

50.57%

75%

Madhya Pradesh

31.98%

16.17%

Maharashtra

15.15%

7.76%

Rajasthan

2.31%

1.17%

Congress accuses govt of surrendering before Gujarat

The Congress on Wednesday accused Chief Minister Mohan Yadav of compromising the state's interests in favour of Gujarat after four states reached an agreement to resolve decades-old issues related to displacement and land compensation under the Sardar Sarovar project.

State Congress president Jitu Patwari said several villages were submerged and millions of people were displaced due to the project. "The same Madhya Pradesh government, which gave its land and forests for the project, had demanded Rs 7,669 crore as compensation from the Gujarat government," he said.

Leader of the Opposition Umang Singhar alleged that Madhya Pradesh had suffered the loss of land and villages due to submergence, yet the state would now have to make the payment.

Sardar Sarovar project: MP to give Rs 231.80 crore to Gujarat as rehabilitation expenditure

Madhya Pradesh will now pay only Rs 231 crore towards the rehabilitation cost of the Sardar Sarovar project, instead of around Rs 1,500 crore, following a decision taken at a meeting chaired by Union Home Minister Amit Shah in New Delhi on Tuesday.

The Attorney General of India had opined that the rehabilitation cost should be shared among the four partner states - Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

However, in the meeting held over Sardar Sarovar project in New Delhi on Wednesday, the decision was taken to reduce the Madhya Pradesh share in rehabilitation cost from proposed 31.98 % to 16.17 %.

Now, Madhya Pradesh needs to pay only Rs 231. 80 crores to Gujarat, informed Water Resource Department Minister Tulsi Silawat.

The four states on Tuesday signed an agreement to resolve three decades long-pending payment disputes linked to the Sardar Sarovar Project on the Narmada river.

After the meeting, a decision was taken to increase the Gujarat s expenditure cost from 50.57 % to 75 %, Maharashtra's expenditure share was reduced to 7.76 % from 15.15 % and Rajasthan's expenditure share was slashed to 1.17 % from 2.31%.

As per the agreement, Madhya Pradesh has to shelve its claim seeking Rs 7,669 crore as compensation from Gujarat under rehabilitation. Of the total land affected by the project, the maximum area was in Madhya Pradesh. The submerged area included forest land and 178 villages.

Percentage-wise, 55% of the land affected by the project among the partner states was in Madhya Pradesh.

When the dam height was increased to 58 metres, an additional 5,000 hectares of land in the state were submerged, taking the number of affected villages to 192.

Based on the overall rehabilitation assessment, Madhya Pradesh had staked its claim for Rs 7,669 crore in compensation from Gujarat, the main beneficiary of the project.

When asked by the media about the pending rehabilitation work, MSME minister Chetanya Kasyap said the state government would undertake it on its own.