Punjab Issues 30-Day Ultimatum to Rajasthan Over River Water Dispute, Demands ₹1.44 Lakh Crore in Royalties

An escalating inter-state water dispute has taken a dramatic turn as the Punjab government issued a final, high-stakes demand notice to the neighboring state of Rajasthan. Citing historical water-sharing frameworks, Punjab has formally demanded a staggering ₹1.44 lakh crore in royalties and compensation for river water usage spanning from 1961 to 2025. Setting a rigid deadline, state authorities have warned of imminent legal action if the multi-billion-rupee payment is not cleared within 30 days.Historical 1920 Agreement Cited as the Legal BasisThe foundation of Punjab's massive financial claim stems from a historic water-sharing agreement signed in Shimla on September 4, 1920, involving the erstwhile rulers of Bikaner, Bahawalpur, and Punjab. Under the terms of the colonial-era agreement, Bikaner was assessed a cess of ₹6.50 per acre annually for the water supplied to the region.Updating these historical metrics to modern monetary values, Punjab calculated the outstanding dues at a revised rate of ₹141.20 per acre per year. This calculation incorporates royalties for an average allocation of 10 million acre-feet of water alongside an eight percent cumulative interest rate. Furthermore, state communications indicate that Rajasthan is expected to continue paying these royalties until the formal signing of the Indus Water Treaty. Official notices were previously dispatched to the Additional Chief Secretary of Rajasthan’s Water Resources Department on March 18 and May 4 before escalating to the current final ultimatum.Punjab Demands ₹312 Crore From Haryana for Canal MaintenanceAmidst the standoff with Rajasthan, Punjab has also targeted neighboring Haryana over long-pending canal maintenance dues. Punjab Chief Secretary KAP Sinha penned a formal letter to Haryana Chief Secretary Anurag Rastogi, demanding the immediate release of ₹312.59 crore for the operation and upkeep of shared conveyance canals within the Bhakra Canal System.The breakdown of the dues includes ₹281.78 crore allocated for the Bhakra Main Line Division in Patiala and ₹30.80 crore designated for the Mansa Division. According to official records from Punjab, Haryana has defaulted on these maintenance payments since the 2015–16 financial year. The Bhakra Canal system operates with a total allocation capacity of 12,455 cusecs, distributed among stakeholder regions: Haryana holds a 63 percent share (7,841 cusecs), Punjab holds 25 percent (3,108 cusecs), Rajasthan accounts for 7 percent, Delhi for 4 percent, and Chandigarh utilizes the remaining 1 percent.Supreme Court Updates on BBMB DuesIn a parallel development concerning regional water and energy governance, the central government informed the Supreme Court regarding ongoing disputes over Himachal Pradesh's dues from Bhakra Beas Management Board (BBMB) projects. During Wednesday's proceedings, the Centre reported that the Punjab government is actively reviewing a proposal to settle outstanding claims through energy transfers rather than direct cash payments. The Supreme Court has scheduled the next formal hearing for this matter on August 20.