Himachal Pradesh and Punjab Face off over Lucrative Shanan Power Project

K R Bharti, a former IAS officer, says that as per the law, Himachal Pradesh has the right on the 110 MW Shanan hydro power project. The Punjab government does not want to give up this lucrative project as it earns more than Rs 200 crore annually. On the other hand, the Himachal Pradesh government is fighting a strong legal battle this time in the Supreme Court to get the possession of the project which is located on its land.

Shimla : The Punjab government earns more than Rs 200 crore annually from Shanan power project located in the Mandi district of Himachal. During the British rule, this project was on a lease of 99 years. After the lease period ends on March 2 this month, Himachal gets its rights, but the Punjab government does not want to give up this lucrative project as it is one of big projects that fill its treasury.

This is the reason why the Punjab government has again taken this matter to the Supreme Court. On the other hand, the Himachal government is also not going to give up its rights easily and is preparing to present its case in the apex court.

This case is being heard by the division bench of Justice Abhay S. Oak and Justice Ujjal Bhuiyan in the Supreme Court. At present, the top court has ordered to maintain status quo till the next hearing on April 8. At the same time, the Energy Ministry of the Central Government has also asked Punjab and Himachal in a letter written on March 1 not to take any strict action regarding this project. In such a situation, Himachal Pradesh will now have to present its stand strongly in the Supreme Court.

K R Bharti, a former IAS officer and Finance Secretary, Himachal Pradesh, says that by law, Himachal has the right on the Shanan project and the terms of the lease also point in this direction. This project is on the land of Himachal Pradesh and after the expiry of the lease period after the Punjab Reorganization Act, Himachal gets the right over this project.

What is Shanan power house project and what was the agreement made during the British rule? During the British rule, Raja Jogendra Sen of the princely state of Mandi had provided land for the Shanan power plant. According to the agreement that was signed during that time, the lease period was kept at 99 years, that is, after completion of 99 years, this power plant was to be handed over to the government of the land (land under Mandi princely state) where it was established.

After India's independence, Himachal Pradesh was a part of Punjab. Although Himachal was formed on 15 April 1948, it got the status of a full state in 1971. During the Punjab Reorganization Act, Shanan power house remained under the ownership of the Punjab Government.

As per the terms of the Punjab Reorganization Act 1966, this power project was transferred to the Punjab Government for management. The Shanan power house established on the Uhal river of Jogendranagar in Mandi had the capacity to produce 48 MW electricity in the year 1932. Later, the Punjab Electricity Board increased its production capacity. Fifty years after the power plant was commissioned, in the year 1982, the generation capacity of Shanan project went up to 60 MW of energy. Now its capacity has been increased by 50 MW, reaching a total of 110 MW. So, Punjab does not want to let go of these earnings easily.

Legally, Himachal's position is strong. The rights of the legal heir of the Raja of Mandi, who entered into an agreement with the British Government, belong to the Himachal Government.

Amidst this, Himachal CM Sukhwinder Singh Sukhu has said that the stand of their state will be presented strongly in the Supreme Court after the end of the lease period. The state government believes that the ownership of the property given on lease cannot be transferred. It is also important to note that earlier the Shanan project was transferred to the Punjab Electricity Board because the State Electricity Board did not exist in Himachal in the year 1966. Now there is a State Electricity Board in Himachal. Senior media person Navneet Sharma says that Himachal will get this project because the legal side of the state is strong.

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