SC Ends 60-Year Power Dispute, Himachal To Get 11,973 Million Units

The Supreme Court has brought an end to a nearly six-decade-old power-sharing dispute involving Himachal Pradesh, Punjab and Haryana, directing the latter two states to supply 11,973 million units (MU) of electricity to Himachal Pradesh over 20 years towards historical dues arising from the Bhakra-Nangal and Beas hydroelectric projects. The decision provides a mechanism to implement Himachal Pradesh's 7.19 per cent electricity entitlement, recognised by the apex court in 2011, and resolves long-standing disagreements over outstanding dues and project construction costs.

A three-judge bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana approved a cashless settlement proposed by the Centre, allowing Punjab and Haryana to clear their liabilities through electricity transfers instead of monetary compensation. The arrangement provides for approximately 598 MU annually during the lean season between October and March over 20 years. Himachal Pradesh will pay applicable charges to the Bhakra Beas Management Board (BBMB) for the electricity received.

The dispute originated after the Punjab Reorganisation Act, 1966, came into effect on November 1, 1966, raising questions over the distribution of electricity entitlements among successor states. An interim arrangement in 1967 allocated Himachal Pradesh only 2.5 per cent of the relevant power share, against 54.5 per cent for Punjab, 39.5 per cent for Haryana and 3.5 per cent for Chandigarh. Himachal challenged the allocation, arguing that its share should reflect the 7.19 per cent of the erstwhile composite Punjab's population transferred to the state. It also cited the submergence of 27,869 acres in Bilaspur for the Bhakra project and over 65,050 acres in Kangra for the Pong Dam.

After repeated representations to the Centre failed, Himachal approached the Supreme Court in 1996 under Article 131 of the Constitution. In its September 2011 judgment, the apex court upheld the state's 7.19 per cent entitlement, applicable to Bhakra from November 1966, Dehar from November 1977 and Pong Dam from January 1978. However, disagreements over arrears and capital costs delayed implementation.

The Central Electricity Authority calculated outstanding dues at 13,066 MU. After deducting approximately 1,093 MU, equivalent to Himachal's Rs 420.77-crore share of historical project capital costs, the net payable amount stands at 11,973 MU. Punjab and Haryana will share the supply obligations in 58:42 and 60:40 ratios for the Bhakra-Nangal and Beas projects, respectively.

Himachal sought settlement within 10 years, while Punjab initially proposed 30 years. The Centre recommended 15 years, but the court settled on 20. It rejected Punjab's objections as vague and superficial, emphasising that its earlier judgment could not be reopened.

The settlement is significant for Himachal's energy security, particularly during lean winter months when hydropower availability can decline. It also reduces uncertainty over historical liabilities, reinforces the BBMB's role in managing shared resources and establishes a framework for enforcing inter-state electricity entitlements. The ruling underscores the need for equitable resource distribution and timely implementation of agreements governing critical infrastructure.