Himachal Govt to contest hard for taking back Shanan power project from Punjab Govt: Sukhu

Shimla, Mar 4

As the Union government writes to Himachal to not proceed with take over proceeding of Shanan Power project following a suite pending by Punjab Government in the Supreme court, Chief Minister Sukhwinder Singh Sukhu who also hold the portfolio of Power talking about it said that the State Government would not deter from taking back the possession of the project from Punjab government.  The lease for Shanan project situated in Jogindernagar tehsil of district Mandi expired on March 2, 2024. Noteworthy that the 110 MW project has an annual turnover of about Rs 200 Crore.

Sukhu said that the State Government has received a letter from the Union (GoI) to not proceed with taking possession of the project as the Government of Punjab has moved SC and the matter is listed for the hearing before the apex court on Monday (today).

CM said that they would not surrender the interest of Himachal Pradesh and will fight the case in the apex court. He said that he has directed the counsel to plead interest of state in the matter. He said that Government would ensure that the power project which was under the ownership of Punjab would come under the ambit of state of Himachal Pradesh after its lease agreement expired.

It is worthwhile to mention that after expiry of 99-year lease for the Shanan Hydropower Project on March 2, 2024 Punjab government filed a suit before the Supreme court evoking article 131 of the constitutions. Under the provisions of article 131 the SC has the power of original jurisdiction in any of these three types of disputes between (a) Union of India vs one or more state, (b) between of Union of India and any state or states on one side and (c) one or more state on the other or between two or more states.

After taking over the State government in 2022 the Chief Minister announced that the government would take back all the power projects handed over to independent power producers and under the equity with centre and other states. The Sukhu government had then claimed that despite harnessing power, the State could not generate sufficient revenue from the existing projects and interest of state in the BBMP, Shanan and other projects was compromised by the previous governments despite harvesting land, water and natural resources and after making number of farmers landless and displaced.

Also read: HP CM Sukhu pushes for Shanan project transfer

Number of dams and power projects were built before and after the Independence in the state especially during the erstwhile United Punjab. The lease and ownership of many projects still continue to be with the states of Punjab and Haryana. The state of Himachal Pradesh has knocked the door of Supreme court for disputes arising out due to the share of the state in the joint projects including BBMB. The state claims that pending revenues and dues are still to be settled worth thousands of Crores to be remitted by the state of Punjab and Haryana and Union Territory Chandigarh.

The Shanan hydropower project was built in 1925 and Raja Joginder Sen, the ruler of the then erstwhile princely state of Mandi executed the lease in the favour of Col BC Batty, a British representative.

The project is situated on the Uhl River, a tributary of the Beas River.  BJP stalwart and former Chief Minister Shanta Kumar also appealed the state Chief minister not to extend the lease of Shanan project as he was among few leaders who had raised the voice against the power companies for levying water cess on the power project and demanding royalty of state from such projects.

About the Author

Himachalscape bureau

Administrator

The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.

View All Posts

Himachalscape bureau

The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.