• Bansagar project serves some of the worst drought areas and therefore, requires implementation immediately so that the recurring damage due to famine and scarcity conditions may cease.
• In Bansagar Project, storage of 2 M.A.F. would be for the use of Madhya Pradesh. They may utilize water up to a total of 2.0 M.A.F. at this site for irrigation, both present and future.
• Madhya Pradesh will also use 1.0 M.A.F. in the areas upstream of Bansagar for Irrigation. Madhya Pradesh will also use 2.25 M.A.F. for Irrigation in the areas of Sone Basin in their State down stream of Bansagar dam. Madhya Pradesh can develop power at the foot of Bansagar dam and in the lower reaches of the Sone in their territory. They can also generate power at Chachai Falls making use of the diverted waters, which are intended, eventually for irrigation.
• In Bansagar Project, storage of 1.0 M.A.F. will be for Uttar Pradesh. Uttar Pradesh will use 1.25 M.A.F. of Sone Waters for irrigation, out of which 0.25 M.A.F. would be from Kanhar river and up to 1.0 M.A.F. from the Bansagar Dam and by lifting from Sone river down stream of Bansagar. The Government of U.P. will decide the relative proportions of the use of this later 1.0 M.A.F.
• In Bansagar Project, storage of 1.0 M.A.F. will be for Bihar. The allocation of water from Sone river agreed to would be for Bihar 7.75 M.A.F., while it is 5.25 M.A.F for Madhya Pradesh and 1.25 M.A.F. for Uttar Pradesh. Bihar's irrigation requirements are accepted as 8.00 M.A.F. Therefore, about 0.25 M.A.F. will be supplemented by pumping from the Ganga Project in the Sone basin depending on the availability of 8.00 M.A.F. sanctioned for Bihar.
• The cost of Bansagar including cost of rehabilitation will be shared approximately in proportion to the water at the site to be utilized by the three States i.e. 2:1:1 i.e. 50%, 25% and 25%.
• Rules for regulation of filling and use of Bansagar Reservoir will be drawn up by a committee consisting of Chairman, Central Water and Power Commission, and Chief Engineer of Irrigation of the three States.
• If the annual flow in the river is less or more than 14.25 M.A.F. there will be pro-rata cut or increase in the use of Sone Waters by the three States in proportion to the allocation for the various States as above, after deducting requirements of old irrigation under the Sone barrage, assessed at 5 M.A.F. which will receive water as a priority. The proportion of cut or increase would, therefore, be 5.25: 2.75: 1.25 for Madhya Pradesh, Bihar and Uttar Pradesh respectively. In planning the National Water Grid, priority will be given for irrigating the scarcity areas of Sone River basin.
• As the hydrology of the river Sone and its tributaries is not well established and as Ganga waters are abundantly available for utilization by lift, the three States agree that the Government of India may set up a special River Commission for study of Sone river and draw up a comprehensive plan for the region, taking into account any readjustment in the use of waters considered necessary by the States. These studies may be made available in 5 to 10 years. Based on these studies, further planning of irrigation & other benefits to the region will be undertaken after discussions and agreement between the States.
• This agreement will not be a precedent for any other Inter-State river basin disputes.

New Delhi Dated the 16th September, 1973.