SC approves 20-year settlement of power dues, Punjab, Haryana to give Himachal 11,973 MU

A three-judge bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana accepted the Centre's proposal for settling the dues through electricity rather than cash payments.
Supreme Court of India
Supreme Court of India (Photo | ANI)
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The Supreme Court settled a decades-old power-sharing dispute between Punjab, Haryana and Himachal Pradesh, directing the two states to pay Himachal Pradesh 11,973 million units (MU) of electricity over 20 years towards its outstanding dues from the Bhakra Nangal and Beas hydroelectric projects dating back to 1966.

A three-judge bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana accepted the Centre's proposal for settling the dues through electricity rather than cash payments.

The court said the settlement would be implemented in accordance with its 2011 judgment, which recognised Himachal Pradesh's entitlement to a 7.19 per cent share in the power generated from the projects.

The Centre's proposal also factors in an adjustment of Rs 420 crore towards the historical capital costs incurred in constructing the dams. Under the arrangement, Himachal Pradesh will not have to make any payment to Punjab or Haryana.

The settlement follows differences among the states over the timeframe for clearing the outstanding dues. While Punjab initially opposed the Centre's proposal for a 15-year payment period and later sought 30 years, Himachal Pradesh had sought settlement within 10 years.

The original power entitlement calculated by the Central Electricity Authority stood at 13,066 MU.

Under the 2011 judgment, Himachal Pradesh's share was fixed at 7.19 per cent, while Punjab and Haryana were allocated 51.80 per cent and 37.51 per cent, respectively. Rajasthan's share remained largely unaffected, while Chandigarh was allotted 3.50 per cent.

The apex court had recognised Himachal Pradesh's entitlement to a share in the Bhakra project from November 1, 1966, the Dehar project from November 1977 and the Pong Dam project from January 1978.

(With inputs from PTI)

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