Himachal Pradesh’s Claim on Shanan Hydropower Project

November 9, 2024

The Himachal Pradesh government has reaffirmed its claim over the Shanan Hydropower Project. This project has a 99-year lease dating back to the British era. Currently, it is under the control of the Punjab government. Chief Minister Sukhvinder Singh Sukhu has sought assistance from the Centre. He aims to secure the project’s return to Himachal Pradesh.

Background of the Shanan Hydropower Project

The Shanan Hydropower Project has a capacity of 110 Megawatts. It was initiated in 1932 by Colonel Batty, the Chief Engineer of Punjab. The lease was granted to Punjab by Raja Joginder Singh Bahadur, the ruler of Mandi. This lease is now nearing its expiry, prompting the current dispute.

Current Government Stance

Chief Minister Sukhu insists that the lease period for Punjab has ended. He argues that the Shanan project area was never part of Punjab. Thus, he believes the Punjab Reorganisation Act of 1966 should not apply. Sukhu has communicated this position to both the Punjab and Union governments.

Punjab’s Response

The Punjab government has responded firmly. They claim that the matter is already settled. Punjab officials argue that the issue is being unnecessarily brought up again. This indicates a potential stalemate in negotiations between the two states.

Outstanding Power Arrears

In addition to the project claim, Sukhu has raised another issue. He requested the Union government to instruct the Bhakra Beas Management Board. He seeks the release of 13,066 million units of outstanding power arrears. These arrears are owed to Himachal Pradesh for the period from November 1996 to October 2011.

This ongoing dispute could strain relations between Himachal Pradesh and Punjab. The outcome may set a precedent for future inter-state power project claims. Both governments will need to navigate these complex legal and historical issues carefully.

Important Facts for Exams:
Shanan Hydropower Project: The Shanan Hydropower Project was initiated in 1922. It has a capacity of 110 Megawatts. The project is currently under Punjab’s control despite Himachal Pradesh’s claims.
Colonel Battye: Colonel Battye was the Chief Engineer of Punjab in 1922. He envisioned the Shanan Hydropower Project. His contributions impacted the region’s energy infrastructure development.
Punjab Reorganisation Act of 1966: The Punjab Reorganisation Act of 1966 divided Punjab into new states. It is central to the current dispute over the Shanan project. Himachal Pradesh argues it should not apply here.
Bhakra Beas Management Board: The Bhakra Beas Management Board oversees water and power resources. It manages the Bhakra and Beas dams. Sukhu seeks outstanding power arrears release from this board.

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