The Punjab Government has asked the Jammu and Kashmir administration to share the construction cost of the Ranjit Sagar and Shahpur Kandi dams, as per the previously agreed terms between the two states.With around Rs 973 crore as unpaid dues, the Punjab Government has sought a meeting with its counterparts in the Jal Shakti Department of the Union Territory of Jammu and Kashmir to resolve the issue. A letter has been sent by the state’s Water Resources Department, seeking a meeting and an early resolution to the issue. Punjab is seeking Rs 301.02 crore as J&K’s share in the Ranjit Sagar Dam and Rs 672.42 crore for the construction of the Shahpur Kandi Dam project.Punjab’s contention regarding the Ranjit Sagar Dam (earlier known as the Thein Dam) is that a bilateral agreement was signed between Punjab and J&K on January 20, 1979. As per Clause 1 of this agreement, 10 per cent of the total cost of the project attributable to the irrigation portion was to be paid by the Government of J&K to Punjab. Clause 1 states: “The parties to this agreement shall be joint partners in the Thein Dam project. The Jammu & Kashmir Government shall, however, make investment only in the irrigation portion of the project in accordance with its share in the water from storage — 10 per cent of the total cost of the project attributable to the irrigation portion thereof.”In the letter sent to Jal Shakti Department of Jammu and Kashmir, Punjab has said that as per the (above cited) Clause, the total amount to be paid has been worked out by the Financial Adviser and Chief Accounts Officer of the Ranjit Sagar Dam as Rs 300.13 crore, which includes the interest on unpaid amount till February 28, 2026. While the total cost of the project is Rs 5,755.54 crore, the cost of the irrigation component is Rs 656.13 crore. The principal payable amount is Rs 65.61 crore and the interest on these unpaid dues (at the rate of 15 per cent) is Rs 235.41 crore, charged from April 1, 2002, to February 28, 2026.Regarding the Shahpur Kandi Dam, Punjab insists that as per Clause 6 of the bilateral agreement signed between Punjab and J&K in 1979, the latter was to take off the Ravi canal from the Shahpur Kandi barrage and contribute towards the cost of the aforesaid barrage. “The Government of J&K has submitted an estimate of Rs 410.29 crore for the extension of the Ravi canal from the Thein Dam, based on the March 2011 prices. After accounting for a 6 per cent annual cost escalation, this amount increases to Rs 777.58 crore up to February 28, 2026. Punjab has already spent an amount of Rs 105.16 crore for constructing the remaining portion of the Ravi canal from the Shahpur Kandi Dam. As per Clause 6 of the agreement, J&K is to pay the difference in cost, which amounts to Rs 672.42 crore, as on February 28, 2026, to the Punjab Government for the settlement of the accounts,” says the letter from the Secretary, Water Resources department, Punjab, a copy of which is with The Tribune.Officials in Punjab say that though they have been taking up this matter consistently with J&K, no reply has been received nor has the due payment been received. “It is difficult for Punjab to maintain the infrastructure in the absence of due financial assistance by J&K as per its share,” an official said.