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SC ends decades-old power tussle, Himachal to get 11,973 MU from Punjab, Haryana

By · Via Times of India · Published by Everything Blog

In short

The court-mandated settlement requires Punjab and Haryana to deliver 11,973 million units of electricity to Himachal Pradesh across a 20-year schedule. The transfer was scaled down from an initial 13,066 million units to offset roughly Rs 420 crore in dam construction costs that Himachal Pradesh historically owed. While Himachal Pradesh sought a 10-year repayment window and Punjab sought 30 years, the court split the difference to close out the legacy arrears. This decision builds on a 2011 ruling that granted Himachal Pradesh a 7.19 percent entitlement to generation from the Bhakra Nangal and Beas projects.

Key points

  • Direct power deliveries over two decades will formally settle the long-standing 1966 inte…: Direct power deliveries over two decades will formally settle the long-standing 1966 inter-state electricity dispute.
  • Historical construction liabilities of roughly Rs 420 crore are absorbed entirely by redu…: Historical construction liabilities of roughly Rs 420 crore are absorbed entirely by reducing the final electricity transfer volume.
  • Resolving the claims through energy transfers eliminates the necessity of complex cash se…: Resolving the claims through energy transfers eliminates the necessity of complex cash settlements among the three state governments.

Sources checked by our analysis pipeline: 1

The BBMB has been providing Himachal Pradesh with its 7.19 per cent share of electricity from these projects since November 1, 2011. However, Punjab and Haryana had not cleared the outstanding dues for the earlier period, amounting to 13,066 MU.

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…

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