Minister of state for Water Resources Sanjeev Balyan said the Centre was only a intermediary as the issue was majorly a state subject.
"We had convened a meeting last month of both the states. The next meeting is due on July 29 and if within one year no solution is arrived at, then the matter would reach the tribunal," Balyan said in Lok Sabha.
Water Resources Minister Uma Bharti said at the upcoming meeting, a solution would be arrived at so that neither of the states would have any problem.
She said Odisha is a state which is very close to the Centre's heart and hence it could not be put to any trouble.
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Raising the issue, Mahtab had demanded that construction of projects by Chattisgarh should be stopped on the Mahanadi river as it will severely impact irrigation and drinking water availability in Odisha.
"As per the 1983 pact signed between two states, a Joint Control Board was to be set up. The two states should come forward to set up the Board so that such problems do not arise in future," he said, adding that Chattisgarh government has started construction before the recommendations of the Technical Advisory committee came in.
Observing that the role of Central Water Commission (CWC) comes only after any state gives notice to the Centre, Balyan said Odisha gave a notice only one and a half months back and since then the Centre has convened meetings.
Earlier, Mahtab hit out at the Chhattisgarh government
for "illegally" constructing a number of barrages on Mahanadi river, saying it has "severely" impacted the flow of water into Odisha and wondered if the Centre was in the process of "killing" the Hirakud dam.
He also targeted the Centre for giving permission to Chhattisgarh for these projects and sought "better and sane" judgement, as he spoke in detail how Odisha was losing out on water meant for drinking and irrigation.
"The (Chhattisgarh) government has acted in an illegal manner. We will go to tribunal if necessary," he said.
Chhattisgarh, where the BJP is in power, has constructed several projects on Mahanadi without informing Odisha, Mahtab alleged, rejecting its Chief Minister Raman Singh's claim that Odisha had never informed his government about any objection.
Ramesh Bais (BJP) said a lot of Mahanadi water was going unused and if some water comes to Chattisgarh, it would help the state.
"If Odisha has any problem, then Chattisgarh Chief Minister is ready to speak to Odisha Chief Minister," Bais said.
Deo also alleged double speak by the Centre when it comes to construction activity on rivers by any state.