Supreme Court resolves decades-old electricity dispute between Himachal, Punjab and Haryana

The Supreme Court has brought an end to the decades-long dispute over the sharing of electricity between Himachal Pradesh, Punjab, and Haryana. The apex court has delivered a final decision regarding the dues of electricity generated from the Bhakra-Nangal and Beas projects.

The Court has determined that over the next 20 years, the states of Punjab and Haryana will supply a total of 11,973 million units (MU) of electricity to Himachal Pradesh.

According to a report by The Hindu, the case was heard by a bench comprising Justice Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohanan. The Court accepted a cashless proposal submitted by the Central Government, under which the payment of dues will be made in the form of electricity rather than cash. This arrangement is based on a 2011 Supreme Court judgment, which determined electricity dues from the Bhakra-Nangal and Beas hydro projects in favour of Himachal Pradesh at a rate of 7.19% since 1966.

The primary issue in this dispute was the timeline for the distribution of electricity. According to reports by Aaj Tak and The Hindu, there was no consensus among the three parties regarding the time period. Himachal Pradesh demanded that its full share of entitled electricity be completed within 10 years. On the other hand, the Punjab government initially opposed the Centre's 15-year proposal and subsequently sought 30 years for the implementation of the scheme. Meanwhile, the Attorney General had suggested a period of 15 years. After hearing the arguments of all parties, the Supreme Court adopted a middle path and fixed a period of 20 years, so that Himachal Pradesh can receive its designated share in phases.

According to the original calculations made by the Central Electricity Authority (CEA), Himachal Pradesh's share of electricity was estimated at 13,066 million units. However, resolving the mutual disputes, the Supreme Court has now paved the way for the supply of 11,973 million units of electricity to be completed in 20 years. This settlement also includes an amount of ₹420 crore for the adjustment of historical capital expenditure incurred during the construction of the dams. Significantly, this arrangement is not based on cash payment, but will be adjusted through the share of electricity, meaning Himachal Pradesh will not have to pay any amount to Punjab or Haryana.

As per the 2011 Supreme Court decision, the division of electricity shares was clarified. Himachal Pradesh's share was fixed at 7.19%, while Punjab's share was 51.80% and Haryana's share was 37.51%. Additionally, Chandigarh's share was fixed at 3.50%, while there was no major change in Rajasthan's share. According to this 2011 decision, Himachal Pradesh was entitled to a share in the Bhakra project from November 1, 1966, in the Dehar project from November 1977, and in the Pong Dam project from January 1978.

The Bhakra-Nangal and Beas projects are considered among the most important multipurpose water and power projects in North India. There had been long-standing tension between the concerned states regarding the distribution of electricity generated by these projects. Himachal Pradesh claimed that its share in these projects was 7.19%. With this recent decision of the Supreme Court, all disputes regarding the share of electricity and its adjustment have been resolved.

Receiving 11,973 million units of electricity over the next 20 years will allow Himachal Pradesh to benefit from its designated share and assist the state's energy requirements. This judgment clarifies the responsibility of Punjab and Haryana, and the implementation of the Central Government's cashless proposal avoids financial complications. Thus, a legal battle spanning decades has ended, and the formula for electricity distribution among the three states has been decided.