Context:
Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan signed a historic agreement to settle outstanding financial dues arising from the Narmada Water Disputes Tribunal (NWDT) Award, 1979. The agreement resolves long-pending issues related to the Sardar Sarovar Project, Indira Sagar Project, rehabilitation costs, and cost-sharing among the beneficiary states.

Explanation:
- The Narmada River originates from Amarkantak Plateau (Madhya Pradesh) and flows west into the Arabian Sea, forming the estuary of Bharuch (Gujarat).
- It is India’s largest west-flowing river, traversing Madhya Pradesh, Maharashtra, and Gujarat, while benefiting Rajasthan through canal irrigation.
- The Narmada Water Disputes Tribunal (NWDT) was constituted in 1969 under the Inter-State River Water Disputes Act, 1956, and delivered its Award in 1979.
- The Award allocated water shares, hydropower sharing, and laid down cost-sharing arrangements among the four states.
- Major projects include the Sardar Sarovar Dam, Indira Sagar Dam, River Bed Power House, and Canal Head Power House.
- The Narmada Control Authority (NCA) oversees implementation of the NWDT Award, dam operations, and Resettlement & Rehabilitation (R&R) of project-affected families.
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