SYLLABUS

GS-2: Functions and Responsibilities of the Union and the States, Issues and Challenges Pertaining to the Federal Structure. 

Context: Six Yamuna-basin States/UT signed an agreement on 15 September 2026 for the long-pending Kishau Multipurpose Project, paving the way for its implementation.

Key Highlights of the Agreement

• Six signatories: Himachal Pradesh, Uttarakhand, Uttar Pradesh, Haryana, Rajasthan and Delhi signed the agreement in New Delhi. 

• Central assistance: The Centre will provide 90% of the cost of the water component as Central Assistance, with the remaining share to be borne by the participating States under the agreed arrangement. 

• Cost-benefit arrangement: Himachal Pradesh’s share of water will be allocated to Delhi and Rajasthan. These two States will bear Himachal Pradesh’s share of the power-component cost in a 75:25 ratio, respectively. 

• Next step: The agreement will facilitate the project's implementation after the prolonged inter-State deadlock and will proceed through the required approval process. 

About the Kishau Multipurpose Project

• Location: The project is proposed on the Tons River, along the Himachal Pradesh–Uttarakhand border, covering parts of Sirmaur district in Himachal Pradesh and Dehradun district in Uttarakhand. 

• Dam: A 232.6-metre-high concrete gravity dam is proposed. 

• Multipurpose nature: The project combines water storage, irrigation, drinking and industrial water supply and hydropower generation. 

• Power: It has an installed capacity of 422 MW and is expected to generate around 1,476 million units of clean hydropower annually. 

• Irrigation: The project is expected to create irrigation potential over approximately 97,000 hectares. 

• Water supply: Benefits are envisaged for Haryana, Delhi, Rajasthan and Uttar Pradesh, while Uttarakhand and Himachal Pradesh also have specified water allocations under the agreement. 

Kishau and the Upper Yamuna Water-Sharing Framework

• 1994 Upper Yamuna Agreement: On 12 May 1994, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh and Delhi agreed on the allocation of utilisable surface waters of the Upper Yamuna Basin. Uttarakhand subsequently became a party after its creation in 2000. 

• Need for storage: The framework recognised the need for storage projects to regulate seasonal flows and improve the reliable utilisation of Upper Yamuna waters. 

• Three major projects: Kishau, Lakhwar and Renukaji were envisaged as major storage projects in the Upper Yamuna system. 

• Separate project agreements: The 1994 framework envisaged separate agreements for individual storage projects, providing the institutional basis for the present Kishau agreement. 

Why Was Kishau Delayed?

• Cost-sharing concerns: States differed over the distribution of project costs and the corresponding benefits, particularly regarding the financial burden on Himachal Pradesh. 

• Submergence and displacement: The proposed reservoir involves land submergence and associated rehabilitation concerns in the project area. 

• Distribution of benefits: Himachal Pradesh would bear impacts within its territory, while substantial water benefits would accrue to downstream States. The absence of an acceptable cost-benefit arrangement prolonged the deadlock. 

• 2026 breakthrough: The Centre and participating States reached consensus on the cost-sharing arrangement in June 2026, including a special mechanism for Himachal Pradesh’s water and power components. 

Significance of the Agreement

• Upper Yamuna water security: Regulated storage can strengthen water availability for drinking, irrigation and industrial requirements across the beneficiary regions. 

• Yamuna flows and conservation: The project is expected to contribute to more regulated flows in the Yamuna. Union Home Minister Amit Shah linked the agreement to improved water availability and Yamuna conservation, including a stated estimate that 25% of the water would become available through the agreement. 

• Irrigation and clean energy: Kishau combines approximately 97,000 hectares of irrigation potential with 422 MW of hydropower capacity, providing both agricultural and renewable-energy benefits. 

• Cooperative federalism: The agreement demonstrates how Central assistance and negotiated cost-benefit sharing can help unlock long-pending inter-State water infrastructure. 

• Integrated basin development: Together with Lakhwar and Renukaji, Kishau strengthens the storage infrastructure envisaged for the Upper Yamuna Basin.