The Pong Dam was built in 1974 in Kangra district in Himachal Pradesh. More than 20,000 people in 339 villages were displaced from 75,268 acres of land. In 1970, a memorandum of understanding was signed between the governments of Himachal Pradesh and Rajasthan to rehabilitate people in Rajasthan's Jaisalmer, Ganganagar and Bikaner districts. Of the 20,362 oustees who claimed compensation, only 16,300 claims have been recognised as valid. Of this, more than 11,000 people have been allotted land. In November 2018, the Rajasthan government rejected the claims for land of the remaining 5,3oo people. On December 10, 2018, the Himachal Pradesh High Court ordered the two states to hold a meeting to resolve the issue. The Himachal Pradesh government offered to buy land for the dam oustees in the state itself provided the Rajasthan government paid for the land. But the latter refused, saying that the land price in Himachal Pradesh was too high and that it could not afford it. In February 2019, the Rajasthan government agreed to provide land to the remaining oustees in Rajasthan itself. Meanwhile, about 700 oustees who are yet to be rehabilitated are fighting court cases for land allotment.