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Punjab Demands ₹1.44 Lakh Crore from Rajasthan for Sutlej River Water Diversion Under Indus Waters Treaty Framework

Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
19 Mar 2026
~2 min
Source: Indian Express
Key Data:₹1.44 lakh crore18,000 cusecs1960156.36% groundwater extraction rate8.6 MAF1920s agreement
Bodies:Supreme CourtRavi-Beas TribunalCentral Ground Water Board
Practice MCQs from today's news ▸
What This Article Covers

1.Punjab CM Bhagwant Mann demands Rajasthan pay ₹1.44 lakh crore for drawing 18,000 cusecs of Sutlej river water since 1960.

2.The demand hinges on a 1920s royalty agreement between princely state Bikaner and Punjab, which ended post the 1960 Indus Waters Treaty.

3.The dispute highlights the conflict between riparian rights and national water allocation, amidst Punjab's severe groundwater depletion of 156.36%.

The Big Picture
Prelims · HighMains · High

Punjab CM Bhagwant Mann has revived a historical interstate water dispute by demanding Rajasthan pay ₹1.44 lakh crore for using Sutlej river water since 1960, citing a pre-Independence royalty agreement. This underscores the complex interplay of colonial-era treaties, the Indus Waters Treaty, riparian principles, and groundwater depletion in India's water-sharing conflicts.

Exam Lens

Quick Exam Facts From News

Punjab's Demand Amount₹1.44 lakh crore
Water Usage Since1960
Water Volume Claimed18,000 cusecs
Punjab Groundwater Extraction Rate (2024-25)156.36%
Rajasthan's Allocation (1981 Agreement)8.6 MAF (Ravi-Beas waters)
Act Challenging AgreementsPunjab Termination of Agreements Act (2004)

1-Minute Revision

  • ›Punjab's Demand Amount: ₹1.44 lakh crore
  • ›Water Usage Since: 1960
  • ›Target this Data: ₹1.44 lakh crore, 18,000 cusecs, 156.36% groundwater extraction rate in Punjab.
  • ›Target this Nodal Body: Ravi-Beas Tribunal (for adjudication), Central Ground Water Board (for data).
  • ›Target this Legal Point: Punjab Termination of Agreements Act (2004) and Supreme Court's 2016 ruling that states cannot unilaterally terminate inter-state agreements.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageMedium

Which constitutional body has original jurisdiction to adjudicate inter-state water disputes like the one between Punjab and Rajasthan?

Q2Statement-basedHard

Consider the following statements regarding the Punjab-Rajasthan water dispute:

1. Punjab's demand for ₹1.44 lakh crore is based on a post-Independence agreement where Rajasthan agreed to pay for water.

2. The 1981 tripartite agreement allocated the largest share of Ravi-Beas waters (8.6 MAF) to Rajasthan.

3. The Punjab Termination of Agreements Act (2004) aimed to scrap water-sharing agreements but protected 'existing utilisation' of water supplies.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the Central Ground Water Board assessment for 2024-25 mentioned in the article, what is Punjab's groundwater extraction rate?

Q4Application/ImpactMedium

What is the primary legal principle Punjab is invoking to challenge Rajasthan's water allocation?

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