After coming to power following the election in 1984, the new Prime Minister Rajiv Gandhi initiated a dialogue with moderate Akali leaders. he reached an agreement with Harchand Singh Longowal, then the President of the Akali Dal. This agreement, known as the Rajiv Gandhi - Longowal Accord or the Punjab Accord.
The accord was step towards bringing peace in the region :
1. It was agreed that Chandigarh would be transferred to Punjab.
2. a separate commission would be appointed to resolve the border dispute between Punjab and Haryana.
3. A tribunal would be set up to decide the sharing of Ravi-Beas river water among Punjab, Haryana and Rajasthan.
4. The agreement also provided for compensation to and better treatment of those affected by the militancy in Punjab and the withdrawal of the application of Armed Forces Special Powers Act in Punjab.
Though the peace was obtained in the region immediately. Militancy was eventually eradicated by the security forces. Peace returned in Punjab by the middle of 1990’s.
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