Six States, UT sign Kishau multipurpose project agreement; CM Sukhu hails ‘major victory’ for Himachal

Geography & Federal Relations · 16 September 2026 · Based on The Hindu (original report)

2-minute summary

An agreement has been signed by five states (Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan) and the Union Territory of Delhi for the implementation of the ₹15,624 crore, 422 MW Kishau multipurpose project. Located on the Tons river along the Uttarakhand-Himachal Pradesh border, the project features a 232.6-metre-high concrete gravity dam with a storage capacity of 1,562 million cubic metres. It aims to irrigate 97,000 hectares of land and generate 1,476 million units of clean hydropower. Under the agreement, the Central Government will bear 90% of the project's financial cost, while the remaining 10% will be shared by the participating states and UT. The agreement resolves an eight-year deadlock, particularly addressing Himachal Pradesh's concerns regarding the financial burden of displacement and environmental costs, while securing the state 1,000 million units of power annually.

Why it's in the news

Five states and the Union Territory of Delhi signed a historic agreement in New Delhi to implement the long-delayed 422 MW Kishau multipurpose project on the Tons river, successfully resolving an eight-year-old deadlock over cost-sharing.

Background and context

The Kishau Multipurpose Project is a key water-resource initiative in the Yamuna basin. The Tons River, on which the project is located, is the largest tributary of the Yamuna River and forms the boundary between Himachal Pradesh and Uttarakhand. The project was conceptualized to address the water and energy needs of the upper Yamuna basin states, tracing back to a water-sharing MoU signed in 1994. However, progress was stalled for nearly a decade due to disagreements over cost-sharing and rehabilitation. Himachal Pradesh resisted contributing an additional ₹800 crore, arguing that since its population would face the brunt of displacement and environmental degradation, the state should be compensated rather than financially burdened. The newly signed agreement resolves this by securing a 90% central funding grant under the National Projects scheme, with Himachal Pradesh receiving substantial power benefits.

Constitutional provisions

  • Article 262 — Provides for the adjudication of disputes relating to waters of inter-State rivers or river valleys.
  • Seventh Schedule (Entry 17, State List) — Covers water, including water supplies, irrigation and canals, drainage and embankments, water storage, and water power, subject to Entry 56 of the Union List.
  • Seventh Schedule (Entry 56, Union List) — Covers the regulation and development of inter-State rivers and river valleys to the extent declared by Parliament by law to be expedient in the public interest.

Government schemes

  • National Projects Scheme — Under this scheme of the Ministry of Jal Shakti, the Central Government provides 90% grant assistance for the irrigation and drinking water components of designated multipurpose projects of national importance.

Mains practice: The resolution of the Kishau multipurpose project deadlock highlights the potential of cooperative federalism in managing inter-state water resources. Analyze the challenges in resolving inter-state water disputes in India and suggest measures for faster resolution.

The signing of the Kishau multipurpose project agreement by five states and Delhi, facilitated by the Union Government, is a landmark example of cooperative federalism. Located on the Tons River, this ₹15,624 crore project highlights how collaborative negotiations can resolve long-standing inter-state water sharing deadlocks.

• **Key Challenges in Inter-State Water Disputes**:

• *Political Mobilization*: Water is a highly emotive issue, often politicized by states for regional electoral gains, making compromises difficult.

• *Institutional and Legal Delays*: Under Article 262, tribunals like the Inter-State Water Disputes Tribunals suffer from protracted delays in giving awards and lack effective enforcement mechanisms.

• *Asymmetric Costs and Benefits*: Upstream states (like Himachal Pradesh in this case) often bear the ecological and rehabilitation costs of displacement, while downstream states (like Delhi and Haryana) reap the primary benefits of water and power.

• *Data Deficit*: Lack of reliable, real-time hydrological data leads to trust deficits between contesting states.

• **Measures for Faster Resolution**:

• *Strengthening Cooperative Federalism*: Utilizing platforms like the Inter-State Council and Zonal Councils for proactive mediation, as seen in the Kishau agreement.

• *Single Tribunal Approach*: Expeditious passage and implementation of the Inter-State River Water Disputes (Amendment) Bill to establish a single permanent tribunal with strict timelines.

• *National Water Data Bank*: Establishing an independent, transparent repository of hydrological data to build mutual trust.

• *Equitable Benefit-Sharing Models*: Compensating source states adequately for ecological services and displacement, similar to Himachal Pradesh securing 1,000 million units of power annually.

In conclusion, resolving water disputes requires moving away from zero-sum legal battles toward collaborative, basin-wide management frameworks. The Kishau agreement serves as a template for balancing regional development, ecological costs, and federal cooperation.

Prelims practice questions

Q1. With reference to the Tons River, which was recently in the news, consider the following statements: 1. It is the largest tributary of the Yamuna River. 2. It flows along the border of Uttarakhand and Himachal Pradesh. 3. It originates directly from the Yamunotri Glacier. Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer: A. Tons is the largest tributary of the Yamuna and flows along the Uttarakhand-HP border. However, it originates from the Bandarpoonch mountain (specifically the Ruinsara snout/Har ki Dun valley), not the Yamunotri Glacier directly, which is the source of the main Yamuna river.

Q2. The Kishau Multipurpose Project, recently approved by six states/UTs, is being funded under which of the following cost-sharing models?

  1. 70% funded by multilateral development banks and 30% by the state of Himachal Pradesh.
  2. 50% by the Central Government and 50% shared equally among the beneficiary states.
  3. 90% by the Central Government as a National Project, and 10% by the participating states/UT.
  4. 100% funded by the Central Government under the PM Krishi Sinchayee Yojana.

Answer: C. As per the agreement, the Indian government will bear approximately 90% of the financial burden of this project, while the remaining 10% will be borne by the participating States and UT in accordance with the 1994 agreement.

Q3. Which of the following states/UTs are signatories to the Kishau Multipurpose Project agreement signed in September 2026? 1. Himachal Pradesh 2. Punjab 3. Rajasthan 4. Delhi 5. Uttarakhand Select the correct answer using the code given below:

  1. 1, 2, 3 and 5 only
  2. 1, 3, 4 and 5 only
  3. 2, 3, 4 and 5 only
  4. 1, 2, 3, 4 and 5

Answer: B. The six participating entities are Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, and Delhi. Punjab is not a signatory to this agreement.

Revision flashcards

  • On which river is the Kishau Multipurpose Project located, and where is it situated? It is located on the Tons River (the largest tributary of the Yamuna) along the border of Uttarakhand and Himachal Pradesh.
  • What is the power generation capacity and estimated cost of the Kishau Multipurpose Project? The project has a capacity of 422 MW (generating 1,476 million units of clean hydropower) and an estimated cost of ₹15,624 crore.
  • What is the funding pattern agreed upon between the Centre and the States for the Kishau Project? The Central Government will bear 90% of the financial cost (as a National Project), while the participating States/UT will share the remaining 10%.
  • Which constitutional article governs the adjudication of inter-state river water disputes in India? Article 262 of the Indian Constitution empowers Parliament to adjudicate disputes relating to the waters of inter-state rivers or river valleys.
  • Why did Himachal Pradesh initially oppose the cost-sharing formula of the Kishau Project? HP opposed paying an extra ₹800 crore state share because its local population faces the primary displacement and environmental impact, arguing it deserved compensation rather than extra financial burdens.

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