NEW DELHI: Maharashtra and Gujarat have signed an agreement to prepare detailed project reports on linking of rivers that will benefit both.

Watched by Prime Minister Manmohan Singh, the tripartite Memorandum of Understanding (MoU) was signed on Monday by Maharashtra Chief Minister Ashok Chavan, his Gujarat counterpart Narendra Modi and Union Minister for Water Resources Pawan Kumar Bansal.

With an aim to provide water to arid and water deficit areas, Gujarat and Maharashtra have signed a pact with the Central Government to prepare project reports to inter-link several rivers in their region.

Gujarat Chief Minister Narendra Modi and Chief Minister of Maharashtra, Ashok Chavan, on Monday signed an MoU to prepare a detailed project report (DPR) for two river interlinking projects to facilitate inter-basin transfer of water to benefit both the states.