Supreme Court Settles Himachal's Decades-Old Power Dues Dispute With Punjab and Haryana
The Supreme Court ended a long dispute between Himachal Pradesh, Punjab and Haryana over Himachal's unpaid share of electricity from the Bhakra Beas Management Board (BBMB) projects, due since 1966.
A Bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana accepted the Centre's "cashless" proposal. Under it, Punjab and Haryana will pay their dues to Himachal in electricity, not money.
Punjab and Haryana will give Himachal 11,973 million units (MU) of electricity over 20 years. Punjab had wanted 30 years to pay, while Himachal had asked for 10 years.
Himachal's original entitlement was calculated at 13,066 MU by the Central Electricity Authority. An adjustment of ₹420 crore, towards the old construction costs of the dams, has been built into the deal, so Himachal will not have to pay anything to Punjab and Haryana.
The settlement follows the Supreme Court's 2011 verdict, which fixed Himachal's share in the projects at 7.19%. That verdict fixed Punjab's share at 51.80% and Haryana's at 37.51%, and gave Himachal its share in Bhakra from 1 November 1966, Dehar from November 1977 and Pong from January 1978.
Bhakra Beas Management Board (BBMB)
The Bhakra Beas Management Board, or BBMB, is a body set up by the central government that runs the big dams, canals and power stations on the Sutlej and Beas rivers. These include the Bhakra dam, the Pong dam and the Dehar power house. It supplies water and electricity to Punjab, Haryana, Rajasthan, Himachal Pradesh, Delhi and Chandigarh. It works like a neutral manager for shared property that belongs to several states.
The dues settled now are Himachal's unpaid share of electricity from the BBMB's Bhakra, Dehar and Pong projects. Because the BBMB runs these plants for all partner states, the Court's solution simply adjusts the flow of power: Punjab and Haryana will hand over part of their electricity to Himachal for 20 years.
Article 131: Original Jurisdiction of the Supreme Court
Article 131 of the Constitution says that some kinds of disputes between governments can be taken straight to the Supreme Court, and to no other court. These are disputes between the Centre and one or more states, or between two or more states. Such a case is filed as an "original suit", like a civil case filed in a trial court. The Supreme Court here acts as the first and only court, not as an appeal court. This is called its original jurisdiction.
Himachal's claim to its share of BBMB electricity reached the Supreme Court as an original suit under Article 131, because it was a dispute about legal rights between states and the Centre. The 2011 decree fixed the 7.19% share, and the latest order closes the case by settling the arrears in electricity.
- Settlement: 11,973 MU of electricity from Punjab and Haryana to Himachal Pradesh over 20 years
- Original entitlement calculated by the Central Electricity Authority: 13,066 MU
- ₹420 crore adjustment for historical capital costs factored in; Himachal pays nothing
- Punjab sought 30 years; Himachal sought 10 years; Centre's earlier proposal: 15 years
- Bench: CJI Surya Kant, Justices Joymalya Bagchi and V. Mohana
- 2011 shares: Himachal 7.19%, Punjab 51.80%, Haryana 37.51%; Chandigarh's share fixed at 3.50%
- Himachal's share runs from Bhakra (1 November 1966), Dehar (November 1977), Pong (January 1978)