The controversial 1981 water-sharing agreement came into being after Haryana was carved out of Punjab in 1966.
For effective allocation of water, the SYL canal link was conceptualised and both the states were required to construct their portions within their territories.
Haryana constructed the portion of SYL canal in its territory. However, Punjab after initial work, stopped the work, leading to spate of litigations.
In 2004, the Congress government of the state came out with the Punjab Termination of Agreement Act with an intention to terminate the 1981 agreement and all other pacts relating to sharing of waters of rivers Ravi and Beas.
The apex court had first decreed the suit of Haryana in 2002 asking Punjab to honour its commitments with regard to water sharing in the case.
Punjab challenged the verdict by filing an original suit which was rejected in 2004 by the Supreme Court which asked the Centre to take over the remaining infrastructural work of the SYL canal project.
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