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Punjab Demands Rs 1.44 Lakh Crore Water Royalty From Rajasthan, Warns of Legal Action

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Chandigarh: The Punjab government has demanded an outstanding royalty of Rs 1.44 lakh crore from neighbouring Rajasthan for river water supplied for irrigation and drinking needs. Punjab Cabinet Minister for Water Resources Barinder Kumar Goyal stated that the state administration calculated the total dues based on applicable standard rates and has formally written to the Rajasthan government on two separate occasions. However, Rajasthan has yet to respond to the payment notices, prompting Punjab officials to warn that legal recourse will be pursued in accordance with established norms if the matter remains unaddressed.

The financial claim traces back to historical water-sharing arrangements originating from a 1920 tripartite agreement involving the princely state of Bikaner, undivided Punjab, and the British government, under which water charges were assessed on a per-acre basis. While Rajasthan routinely paid royalty fees for river water until the signing of the Indus Waters Treaty in 1960, payments ceased thereafter despite Rajasthan continuing to draw water through Punjab’s canal network, including the Ferozepur Feeder. Punjab officials emphasized that the current figure accounts for average annual water usage along with applicable interest accumulated over the past six decades.

The demand forms part of a broader push by the Punjab government to secure long-overdue financial compensation for its canal infrastructure and water resources. State authorities have reiterated that neighbouring states drawing from Punjab’s water systems must either clear their legitimate financial obligations or face legal challenges regarding water drawls. As Punjab continues to modernise its internal canal network to optimize surface water utilisation, the administration maintains that recovering these substantial pending dues is critical for sustaining the region’s agricultural infrastructure and conserving groundwater.

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