Explainer: Why is Punjab CM Bhagwant Mann Demanding Rs 1.44 Lakh Crore From Rajasthan For Water?
Mann on Wednesday demanded Rs 1.44 lakh crore as water royalty from neighbouring Rajasthan. Experts see AAP vs BJP politics behind it.

Published : March 20, 2026 at 5:03 PM IST
By Kawaljit Kaur
Chandigarh: Punjab Chief Minister Bhagwant Mann has sparked a new discord by demanding Rs 1.44 lakh crore as water royalty from neighbouring Rajasthan on Wednesday. He said Rajasthan has been using Punjab's water for free over the last six decades, and if the dues are not paid, Punjab will consider stopping Rajasthan's water supply.
To unpack the issue, we need to go back in time and examine history.
The 1920 Agreement
According to riparian law, Punjab has full rights over river waters because none of the rivers Satluj, Ravi and Beas, passes through Rajasthan.
The Punjab-Bikaner Canal Agreement was signed in 1920 between the then governments of British India, the Bahawalpur princely state in Punjab and the Bikaner princely state in Rajasthan. According to CM Mann, under tripartite agreement signed in September 1920, Rajasthan had agreed to pay a price per acre for the water flowing from Punjab through the Gang (or Bikaner) Canal, which was completed in 1927.
The canal originated from the Ferozepur headworks in undivided Punjab. Rajasthan paid this money till 1960, but after that it stopped paying.
At present, Rajasthan receives 18,000 cusecs of water from Punjab through the Ferozepur Feeder and the Gang Canal. Punjab argues that Rajasthan is still taking water under the 1920 agreement, but not paying the money for it.
Gang Canal, Rajasthan Feeder
The Gang Canal, built by Maharaja Ganga Singh, is an old and important canal serving Rajasthan. It originates from the Harike Barrage and supplies water to northern Rajasthan, especially Bikaner and Sri Ganganagar regions. Its main purpose was to provide water for irrigation, which led to the development of agriculture in dry desert areas. It has played a significant role in making many parts of Rajasthan fertile.
The 204 km-long Rajasthan Feeder Canal is an important part of the Indira Gandhi Canal Project. It starts from Harike Barrage in Tarn Taran district, near the Ferozepur border, passes through parts of Punjab before entering Rajasthan to supply water to arid areas like Sri Ganganagar and Hanumangarh. Its main purpose is to provide irrigation and potable water, which has led to the development of agriculture in desert areas.
How Water Distribution Changed From 1920 To 1960
The share of water received by Rajasthan has increased steadily over time. When the Bikaner Canal was built in the 1920s, price of water Rajasthan received, was fixed. In 1955, the surplus water of the Ravi and Beas was distributed, in which Rajasthan, despite being a non-riparian state, was given a large share of 8 million acre feet (MAF).
In 1960, the 'Indus Water Treaty' was signed between India and Pakistan. Rajasthan says there was no mention of a water bill in the 1960 arrangements, so they stopped paying money. But Punjab argues that the 1960 treaty never abrogated the old agreement of 1920.
1981 Water Agreement
On December 31, 1981, a new water sharing agreement was signed between the Chief Ministers of Punjab, Haryana and Rajasthan, under the leadership of then Prime Minister Indira Gandhi. According to the ‘South Asia Network on Dams’ report, under this agreement, Rajasthan’s share of water was increased to 8.6 MAF. Then Punjab CM Darbara Singh, Haryana CM Bhajan Lal and Rajasthan CM Shiv Charan Mathur signed the agreement.
Water expert Colonel Jasjit Singh Gill told ETV Bharat, "It is the government’s decision to ask for water from Rajasthan. For a long time, Rajasthan has been getting 8.9 MAF of water through the Rajasthan Canal and 1.1 MAF through the Gang Canal. The agreement was signed in 1920, in which the conditions of paying 6 paise per acre was fixed. At present, its price is Rs 1,44,000. Given that water is a finite resource, and the groundwater situation in Punjab is dire, even if Rajasthan’s water is reduced by half, Punjab will get relief of up to 30 per cent. If Rajasthan is using water, it will have to pay royalty.”
Behind The Sudden Demand: AAP vs BJP
Social activist Poonam Arya, a senior lawyer at the Punjab and Haryana High Court, said, "This issue is not just about water, it is also about politics. The AAP government in Punjab has raised a 66-year-old issue to put pressure on the BJP-ruled Rajasthan. Bhagwant Mann says the previous Congress and Akali Dal governments have never raised this issue. There was a review after every 25 years, but no one raised the issue. Now, the AAP is presenting it as the right of farmers of Punjab. Groundwater level in Punjab is falling, farmers are in trouble. In such a situation, the slogan of "free water to Rajasthan" strengthens the vote bank. On the other hand, the Rajasthan government is silent for now, but if the water supply is stopped, farmers of Shri Ganganagar-Hanumangarh will be ruined. The central government will be caught in the middle."
She added, "Punjab is claiming its riparian rights, while Rajasthan will try to sidestep by calling the 1920 agreement "obsolete". The 1981 agreement was never passed in the Punjab Assembly, so AAP is challenging it. Overall, water politics in North India has heated up again, with the Sutlej-Yamuna Link (SYL) canal, the Ravi-Beas Tribunal, and now this."
Dr Gurdarshan Singh Dhillon said, "This statement has been given only to increase the political base, in fact, the government is not serious about this issue and there is no commitment. Bhagwant Mann has never been worried about water during the last 4 years. It is true that the royalty of water is due to Rajasthan and it is also necessary to take it. Earlier, Rajasthan also paid the price for it, but after 1960, no price was paid. Because the governments of Punjab have never been sincere for Punjab. The current Chief Minister, when it comes to giving water to Haryana, calls himself the heir of Bhai Ghanaiya ji."
Historian Gurdarshan Singh Dhillon said, "People of Punjab have always been pushed around on the issue of water. Punjab's water has always been robbed. We owe a debt to Rajasthan and it is also mandatory to take it, but with the attitude of the governments, especially of the current CM, royalty cannot be given under any circumstances. Not only has Punjab been robbed of water, it has also been robbed of hydropower generated by the dams. From Darbara Singh till now, CM's have betrayed Punjab by not taking the issue of water seriously."

