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Six States Agree To Sign MoU To Restart Kishau Dam Project

The deal reallocates costs so work can restart after a formal MoU is signed followed by Union Cabinet approval.

Overview

  • Senior officials meeting chaired by Home Minister Amit Shah reached an in‑principle deal that the six participating states will sign a memorandum of understanding to resume the stalled Kishau multipurpose dam.
  • The Centre will fund 90% of the project’s water component as central assistance while the six states share the remaining 10% of that component.
  • Beneficiary states of the water component agreed to carry Himachal Pradesh’s roughly ₹2,000 crore power‑component liability in return for Himachal transferring its allocated water share to Delhi and Rajasthan.
  • The agreement, which multiple outlets report was reached on Tuesday, clears an eight‑year cost‑sharing deadlock but leaves major implementation risks including rehabilitation, compensation for displacement and environmental approvals unresolved.
  • After the MoU is formalised the project will be placed before the Union Cabinet for approval and only then can detailed financing, land acquisition and construction timetables be set.