Chandigarh / Jaipur: The Punjab government has formally demanded an outstanding ₹1.44 lakh crore from Rajasthan as water royalty for river water supplied for irrigation and drinking purposes between 1961 and 2025, and has threatened legal action if the dues are not settled, according to an exchange of official letters between the two states.
Background to the claim
Punjab’s communication recalls a tripartite water-sharing arrangement dating to 1920, when the erstwhile rulers of Bikaner, Bahawalpur (now in Pakistan) and Punjab agreed on allocations. After the Indus Waters Treaty of 1960, the royalty regime changed, but Punjab says Rajasthan continued to draw water and owes royalty that was paid only intermittently.
Officials in Chandigarh have calculated arrears at the current applicable rate of ₹141.20 per acre per annum, applied against an estimated supply averaging 10 million acre-feet, with interest at 8 per cent added to arrive at the total demand of ₹1.44 lakh crore for the period 1961–2025, the letters show.
Official correspondence and warnings
Punjab has sent multiple reminders to Rajasthan over the past months, including letters dated 18 March and 4 May, but says it has not received a response. In its most recent communication, Punjab’s Chief Secretary KAP Sinha also addressed a related demand to Haryana over payments due for operation and maintenance of common carrier channels in the Bhakra Main Line.
“If Rajasthan fails to pay royalty, we will take legal action as per norms.”
The quote appeared in a statement attributed to Punjab Water Resources Minister Barinder Kumar Goyal in the correspondence, underlining the state’s intent to pursue recovery through available legal channels if reconciliation efforts fail.
Related bills to Haryana and Bhakra canal allocation
Punjab has billed Haryana for ₹312.59 crore for maintenance of common carrier channels in the Bhakra Main Line Division (Patiala). Separate demands include ₹281.78 crore from the Bhakra Main Line Division and ₹30.80 crore from the Mansa Division, the correspondence notes.
| Item | Amount |
|---|---|
| Punjab’s claim on Rajasthan (1961–2025) | ₹1.44 lakh crore |
| Haryana — common carrier maintenance | ₹312.59 crore |
| Bhakra Main Line Division billed to Haryana | ₹281.78 crore |
| Mansa Division billed to Haryana | ₹30.80 crore |
For context, the Bhakra canal allocation is divided among states: 63% to Haryana, 25% to Punjab, 7% to Rajasthan, 4% to Delhi and 1% to Chandigarh. Punjab says Haryana has not remitted canal maintenance charges since 2015–16.
Implications for Rajasthan
The demand reopens a long-dormant financial issue rooted in pre-Independence and treaty-era arrangements. If pursued legally, the claim could force a reassessment of past water withdrawals and fiscal liabilities, with potential impacts on state budgets, irrigation agencies and farmers who rely on canal supplies.
Rajasthan’s share in the Bhakra canal system is modest numerically, but accumulated royalty claims spanning decades and compounded by interest have produced the substantial figure Punjab now seeks. The correspondence indicates Punjab will press for settlement according to its calculations unless the matter is negotiated.
Next steps and possible outcomes
- Punjab says it has issued formal notices and awaits a response; it may pursue legal remedy if payment is not forthcoming.
- Rajasthan has not publicly replied to the latest demand in the material provided; any formal rebuttal or negotiation request would shape the immediate course.
- Inter-state dialogue, a tribunal or judicial adjudication are possible avenues if talks fail.
The correspondence revives historic water-sharing questions at a time when river use, irrigation needs and interstate cooperation remain politically sensitive across northern India. Officials in both states may now face pressure to clarify records, valuation methodology and the legal basis for such large retroactive claims.
Meera Rathore reports from Rajasthan.
