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Himachal will not relent in dispute with Punjab over British-era Shanan project

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu sought the Union government’s assistance in securing the return of the Shanan Project from Punjab

Updated - November 07, 2024 07:38 pm IST - CHANDIGARH

A view of the Shanan Hydroelectric power project in Mandi, Himachal Pradesh. File

A view of the Shanan Hydroelectric power project in Mandi, Himachal Pradesh. File | Photo Credit: Special Arrangement

The government of Himachal Pradesh on Thursday (November 7, 2024) yet again made it clear that it would not relent its claim over the 99-year-old lease of the British-era 110 Mega Watt (MW) Shanan Hydropower Project situated in Himachal’s Jogindernagar, which is presently under the control of the Punjab government.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu sought the Union government’s assistance in securing the return of the Shanan Project from Punjab. He raised the demand during his meeting with Union Power Minister Manohar Lal in Shimla. The meeting was held to discuss various issues of power and housing related to Himachal Pradesh.

Mr. Suhku said Punjab’s lease period for the project has ended and urged the Union government to intervene to ensure the project’s transfer to Himachal Pradesh, along with all its assets. “The area of Shanan project was never part of the erstwhile Punjab, therefore, Punjab Reorganisation Act of 1966 does not apply,” he said.

The Chief Minister had earlier written a letter to Punjab Chief Minister Bhagwant Mann stating that Himachal Pradesh government has decided not to renew or extend the lease period of the project, and intends to take over the project. The 110 MW Shanan power project was envisaged by Col. Battye, the then Chief Engineer of government of Punjab in the year 1922. The 99-year-old lease of the project given to Punjab by the then ruler of Mandi, Raja Joginder Singh Bahadur. The Punjab on the other hand has made it clear that the matter is well settled and was being unnecessarily raked.

Mr. Sukhu also urged the Union government to direct Bhakra Beas Management Board to release 13,066 million units of outstanding power arrears owed to Himachal Pradesh for the period from November 1996 to October 2011. He said that despite a Supreme Court ruling in favour of the State, Himachal Pradesh has yet to receive its rightful share from the concerned States.

Mr. Sukhu also raised the matter of royalty aligned with the State government’s energy policy, which mandates 12% royalty for the first 12 years, 18% for the subsequent 18 years and 30% for the next 10 years in the power projects. He said that private companies already comply with this policy and emphasised that central Public Sector Undertakings should also follow it as well.

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