New Delhi: The Supreme Court on Monday approved a settlement to resolve a decades-old dispute over Himachal Pradesh’s share of electricity generated by the Bhakra and Beas hydroelectric projects. Under the arrangement, Punjab and Haryana will provide Himachal Pradesh with 11,973 million units of electricity over the next 20 years.
A Bench headed by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and V Mohana, accepted the Centre’s proposal to clear the outstanding dues through electricity rather than a cash payment.
The settlement follows the Supreme Court’s 2011 ruling, which recognised Himachal Pradesh’s entitlement to 7.19 per cent of the power generated by the projects, with the dues calculated retrospectively from 1966.
How Will Punjab And Haryana Clear Himachal Pradesh’s Power Dues?
The Centre’s proposal sets a 20-year timeline for Punjab and Haryana to transfer a combined 11,973 million units of electricity to Himachal Pradesh.
The three states had sought different timelines for settling the dues. Punjab initially opposed the Centre’s 15-year proposal and later requested a 30-year repayment period. Himachal Pradesh, meanwhile, wanted the outstanding amount cleared within 10 years.
The final arrangement also accounts for Rs 420 crore towards historical capital expenditure incurred in constructing the dams. With this adjustment included, Himachal Pradesh will not be required to make any payment to Punjab or Haryana.
What Did The Supreme Court Rule In 2011?
The dispute concerns Himachal Pradesh’s share in power generated by the Bhakra and Beas projects dating back to the reorganisation of Punjab in 1966.
In its 2011 decision, the Supreme Court fixed Himachal Pradesh’s share at 7.19 per cent. Punjab’s share was set at 51.80 per cent, while Haryana was allocated 37.51 per cent. Rajasthan’s share remained largely unchanged, and Chandigarh’s share was fixed at 3.50 per cent.
The Central Electricity Authority had initially calculated Himachal Pradesh’s entitlement at 13,066 million units.
The 2011 ruling also specified when Himachal Pradesh’s entitlement would begin for each project: November 1, 1966, for the Bhakra project; November 1977 for the Dehar project; and January 1978 for the Pong Dam project.
The latest Supreme Court order provides a payment mechanism for the long-pending dues, bringing the inter-state dispute over the projects’ power benefits closer to resolution.
