Himachal will not abandon its dispute with Punjab over the British-era Shanan project

A view of the Shanan hydropower project in Mandi, Himachal Pradesh. File | Photo credit: special arrangement

The government of Himachal Pradesh made it clear again on Thursday (November 7, 2024) that it has withdrawn its claim on the 99-year-old lease agreement of the British-era Shanan hydropower project of 110 megawatts (MW). located in Himachal’s Jogindernagar, which is currently under the control of the Punjab government.

Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu sought the help of the Union government in securing the return of the Shanan project from Punjab. He raised the demand during his meeting with Union Power Minister Manohar Lal in Shimla. The meeting was held to discuss various issues of power and housing related to Himachal Pradesh.

Mr Suhku said that Punjab’s lease period for the project has ended and urged the Union government to intervene to ensure transfer of the project to Himachal Pradesh along with all its assets. “The Shanan project area was never part of the erstwhile Punjab, that’s why Punjab Reorganization Act, 1966 does not apply,” he said.

The Chief Minister had earlier written a letter to Punjab Chief Minister Bhagwant Mann stating that the Himachal Pradesh government has decided not to extend or extend the lease period of the project and plans to take over the project. The 110 MW Shanan Power Project was considered in 1922 by Colonel Battye, the then Chief Engineer of the Government of Punjab. The 99-year lease of the project was given to Punjab by the then ruler of Mandi, Raja Joginder Singh Bahadur. The Punjab, on the other hand, has made it clear that the matter is well settled and is being unnecessarily targeted.

Mr. Sukhu also urged the Union Government to direct the Board of Directors of Bhakra Beas to discharge 13,066 million units of outstanding power arrears owed to Himachal Pradesh for the period from November 1996 to October 2011. to give. He said that despite a Supreme Court verdict in favor of the state of Himachal Pradesh, it is yet to receive its due share from the states concerned.

Mr Sukhu also raised the issue of royalties, in line with the state government’s energy policy, which mandates 12% royalties for the first twelve years, 18% for the subsequent 18 years and 30% for the subsequent ten years for the energy projects stilt. He said that private companies are already complying with this policy and emphasized that central government companies should also follow this policy.