The chief ministers of six states signed a memorandum of understanding on the long-pending 660 MW Kishau Multipurpose Project on Tuesday.Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu signed the MOU for the Rs 15,000-crore project with Uttarakhand CM Pushkar Singh Dhami, Uttar Pradesh CM Yogi Adityanath, Haryana CM Nayab Singh Saini, Rajasthan CM Bhajan Lal Sharma, and Delhi CM Rekha Gupta. The MoU was signed in the presence of Union Home Minister Amit Shah and Union Jal Shakti Minister CR Patil.The Kishau Multipurpose Project is a proposed large dam and hydropower project on the Tons River, a major tributary of the Yamuna, along the border shared by Himachal Pradesh and Uttarakhand.The project envisages a 236-metre-high concrete gravity dam with an installed hydropower capacity of 660 MW. It is also expected to create irrigation potential of about 97,076 hectares and provide up to 617 million cubic metres of drinking and industrial water.The project site is located mainly in Himachal Pradesh’s Sirmaur district and Uttarakhand’s Dehradun district. The two states signed an MoU to form a joint venture in June 2015, and Kishau Corporation Limited was incorporated in January 2017.Also in Explained | With $0 disbursed, how Nepal disaster reveals problems in the UN’s Loss and Damage FundThe project is intended to generate electricity and provide irrigation, drinking and industrial water to the beneficiary states, especially Haryana, Delhi and Rajasthan.Why was the signing of the MoU delayed?For eight years, Himachal Pradesh held out on signing the MoU over the project cost burden, particularly the power component, and concerns that the state would not enjoy proportionate benefits.Story continues below this adUnder an earlier financial arrangement, the previous BJP-led Himachal Pradesh government agreed to contribute about Rs 800 crore towards the project cost. The current Congress-led government rejected that arrangement, saying it was not in Himachal’s financial interest, and that it would suffer substantial land submergence and displacement.The project will result in substantial submergence in both Himachal Pradesh and Uttarakhand. According to a 2020 feasibility study, around 2,950 hectares of land will be submerged in total, while 17 villages and approximately 5,498 people are expected to be affected by the project.Himachal Pradesh also argued that it should not be required to invest heavily in a project whose water benefits would largely go to downstream states such as Delhi, Haryana and Rajasthan.“As per the MoU, the share of Himachal’s expense on the project will be borne by Delhi and Rajasthan in the ratio of 75% and 25% respectively because these two states will get the water supply. We also do not require power supply at this moment, and the state will receive the money for providing the power to the neighbouring states”, Additional Chief Secretary, RD Nazeem, who was present in the meeting along with CM Sukhu, told The Indian Express.What does the latest arrangement entail?Story continues below this adA breakthrough was achieved in June 2026 when the Centre announced that it would bear 90% of the project cost, with the six states sharing the remaining 10%.Also Read | The coal factor in Punjab’s ongoing power crisisUnder the latest arrangement, Himachal Pradesh will enjoy a water share of about 378 million cubic metres. The state is also expected to receive around Rs 600 crore annually in economic benefits from the power component once the project becomes operational, without having to make the corresponding capital investment.The resulting agreement also stipulates that Delhi, Rajasthan and Haryana will bear the cost of Himachal Pradesh’s portion of the power component, currently valued at around Rs 2,000 crore, in exchange for Himachal’s share of water.