In News:

Punjab Chief Minister Bhagwant Mann demanded Rs 1.44 lakh crore as water royalty from Rajasthan, citing a 1920 colonial-era tripartite agreement under which Rajasthan paid a fee for water until 1960, but after the Indus Waters Treaty, stopped paying despite continuously drawing 18,000 cusecs of water. Punjab has raised the issue with both the Union Government and Rajasthan, seeking a formal review of the 1920 agreement.

Historical Timeline

Constitutional & Legal Framework

Constitutional Provisions:

• Entry 17, State List — Water primarily a State subject
• Entry 56, Union List — Centre regulates inter-state rivers in public interest
• Article 262 — Empowers Parliament to adjudicate inter-state river disputes; can exclude Supreme Court jurisdiction

Statutory Framework — ISWD Act, 1956: Provides for Tribunal formation upon state request. Tribunal's Award, once gazetted, holds the force of a Supreme Court decree.

Key SC Judgements:

•  Karnataka v. Tamil Nadu (2018) — Cauvery declared a "National Asset"; drinking water needs given primacy
• Punjab Termination Act Case (2016) — Unilateral cancellation of inter-state agreements unconstitutional
• Narmada Bachao Andolan v. UoI (2000) — Water is part of the Right to Life (Article 21); Tribunal Awards are final and binding

Root Causes of Inter-State Water Disputes

• Water Scarcity: Per capita availability has fallen from 5,200 cubic metres (1950) to 1,400–1,500 cubic metres (2024), approaching the scarcity threshold of 1,000 cubic metres by 2050
• Agricultural Intensification: Punjab's groundwater extraction rate stands at 156.36% — nearly three times the national average of 60.63%
• Conflictual Federalism: Water straddles the State List and Union List, creating jurisdictional friction when states prioritise narrow interests
• Hydro-Politics: Electoral compulsions harden state positions, delaying negotiated settlements
• Tribunal Delays: The Cauvery dispute lasted over 30 years — rendering awards difficult to implement

Way Forward

• Benefit-Sharing over Water-Sharing — States cooperate on crop specialisation suited to agro-climatic zones rather than fighting over volumetric allocation
• Digital Twins of River Basins — AI-powered 3D basin models using satellite data (RISAT) for objective "What-If" simulations replacing political bargaining
• Permanent Tribunal — Replace ad hoc bodies with a Single Permanent ISWD Tribunal with specialised benches, as proposed in the ISWD (Amendment) Bill, 2019
• Mediation-First — Mandate neutral expert Dispute Resolution Committees before legal adjudication
• Water Budgets — States must demonstrate efficient irrigation use (drip irrigation, mulching) before claiming larger shares
• Blue Grants — Additional Central funding as cooperative federalism incentive for states entering joint water management agreements