A historic agreement was signed in New Delhi to settle pending payments among the Narmada Award beneficiary states: Maharashtra, Gujarat, Rajasthan and Madhya Pradesh. The agreement took place in the presence of Union Home and Cooperation Minister Amit Shah and Union Jal Shakti Minister C. R. Patil. The Chief Ministers of Maharashtra, Gujarat, Rajasthan and Madhya Pradesh signed it, and senior officials of the Centre and the four states were also present.

The settlement addresses long-running disputes linked with cost-sharing for the construction of the Sardar Sarovar Project. Pending dues to be paid as final settlement have been resolved as a one-time settlement. For Rajasthan, the issue is important because the project was described as beneficial especially for Madhya Pradesh, Gujarat and Rajasthan. Amit Shah said that after the dam was completed, water and electricity reached these states, and where Narmada water reached Rajasthan, both land price and the farmer's situation changed.

For RAS preparation, the agreement is useful as a factual example of inter-state water governance and cooperative federalism. Amit Shah linked the settlement with efforts to strengthen water security and cooperative federalism. He also cited the Kishau dam issue, the Rajasthan-Haryana water dispute and this agreement as examples of cooperative federalism, adding that water used anywhere in the country ultimately benefits an Indian and disputes should be resolved by keeping national loss in mind.