SC ends decades-old power tussle, Himachal to get 11,973 MU from Punjab, Haryana | India News
NEW DELHI: The Supreme Court on Monday settled a decades-old inter-state dispute over unpaid electricity dues from Bhakra Beas Management Board (BBMB) projects, directing Punjab and Haryana to provide Himachal Pradesh with 11,973 million units (MU) of electricity over 20 years. A bench headed by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and V Mohana, accepted the Centre’s proposal to clear the outstanding dues through an energy-based settlement instead of a cash payment.The settlement follows a 2011 Supreme Court verdict that recognised Himachal Pradesh’s entitlement to a 7.19 per cent share in the electricity generated by the Bhakra Nangal and Beas hydroelectric projects. The dues date back to 1966, but Punjab and Haryana had not cleared the state’s outstanding share for the period before November 2011.Under the arrangement approved by the top court, Punjab and Haryana will provide the electricity over 20 years. The settlement also factors in an adjustment of around Rs 420 crore towards Himachal Pradesh’s share of the historical capital costs incurred in building the dams. As a result, the hill state will not have to make any separate payment to Punjab or Haryana.The Centre had earlier proposed that the 13,066 MU in outstanding electricity dues be paid over 15 years, at the rate of 871 MU annually during the lean seasons between October and March. However, the states could not agree on the proposed timeline.Punjab initially opposed the 15-year arrangement and later sought to extend the payment period to 30 years. Himachal Pradesh, on the other hand, wanted the dues cleared within 10 years. The Supreme Court’s decision to settle the matter over 20 years brings an end to the prolonged disagreement over the payment schedule.The original electricity arrears were calculated at 13,066 MU by the Central Electricity Authority (CEA). The Centre’s proposal had also factored in Himachal Pradesh’s liability towards the capital costs of the Bhakra Nangal and Beas projects.According to a report by PTI, the proposal says that Himachal Pradesh’s liability was assessed at Rs 420.7 crore, comprising Rs 249.2 crore payable to Punjab and Rs 171.5 crore to Haryana. This represented the state’s 7.19 per cent share of the composite of Punjab’s outstanding loan-servicing costs for the projects since 1966-67.The Centre had suggested setting off this liability against a portion of the electricity arrears. At the proposed rate of Rs 3.85 per unit, around 1,093 MU would have been adjusted against the capital cost liability.The proposal also provided for the distribution of electricity arrears between Punjab and Haryana in the inter-state ratio of 58:42 for the Bhakra Nangal project and 60:40 for the Beas projects. However, since the states could not reach a consensus on the applicable electricity rate, the Centre recommended settling the dues in energy terms.
What was the 2011 Supreme Court verdict?
The Supreme Court’s 2011 decision fixed Himachal Pradesh’s share in the BBMB projects at 7.19 per cent. Punjab’s share was set at 51.80 per cent, while Haryana was allocated 37.51 per cent. Rajasthan’s share largely remained unchanged, and Chandigarh’s share was fixed at 3.50 per cent.The verdict also specified when Himachal Pradesh’s entitlement would take effect for the three projects. The state was entitled 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.The BBMB has been providing Himachal Pradesh with its 7.19 per cent share of electricity from these projects since November 1, 2011, PTI reported, citing sources. However, Punjab and Haryana had not cleared the outstanding dues for the earlier period, amounting to 13,066 MU.
How did the dispute reach the Supreme Court?
The dispute dates back to the reorganisation of Punjab under the Punjab Reorganisation Act, 1966. Himachal Pradesh maintained that, as a successor state, it was entitled to a 7.19 per cent share in the BBMB projects and their electricity generation.
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After efforts to resolve the disagreement between the neighbouring states failed, Himachal Pradesh approached the Supreme Court in 1996 through an original suit. It sought recognition of its entitlement to a share in the projects and the payment of the corresponding arrears.The Centre subsequently attempted to settle the matter outside court. However, with no agreement emerging between the states, the Supreme Court passed a decree on September 27, 2011, upholding Himachal Pradesh’s 7.19 per cent entitlement.The latest order accepting the Centre’s energy-based settlement provides a mechanism to clear the accumulated dues and closes a dispute that has remained unresolved for decades.
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