Shimla, Dec 16,
The decades-old Shanan Hydroelectric Power Project in Joginder Nagar, Mandi district, has become the center of a fierce legal battle involving Himachal Pradesh, Punjab, and now Haryana. The project, established in 1925 during British rule, recently saw its 99-year lease expire in March 2024. The lease, granted by the then Mandi Raja, has sparked a legal tussle over the rightful ownership and control of the 110 MW facility.
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Punjab has filed a petition in the Supreme Court challenging Himachal Pradesh’s move to reclaim possession of the project following the lease’s expiration. The Punjab government contends that the state has a historical claim over the project and refuses to transfer it to Himachal Pradesh. On the other hand, the Himachal Pradesh government, led by Chief Minister Sukhvinder Singh Sukhu, has urged the apex court to dismiss Punjab’s plea and hand over the project to Himachal, asserting that the lease’s conclusion justifies their claim.
The legal battle took a new turn when Haryana submitted an application to the Supreme Court, seeking to become a party in the case and staking its claim on the project.
Advocate General Anup Rattan informed Himachal Scape that Haryana’s intervention adds complexity to an already contentious issue. The Union of India has also submitted its reply to the court on the matter.
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The Supreme Court, during a recent hearing, sought responses from all stakeholders, including the central government. The bench adjourned the case for further hearing in mid-January 2025, signaling a prolonged legal contest over the project’s future.
Background of the Dispute
The Shanan Power Project was one of India’s earliest hydroelectric installations, constructed during British rule. It played a significant role in supplying power to the region, with its lease agreement signed for 99 years. Following the lease’s expiration, Himachal Pradesh claims ownership by virtue of its location in the state, while Punjab insists on retaining control, citing historical administration and operational involvement.
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The Himachal Pradesh government argues that the project rightfully belongs to the state after the lease period ended, and its continued control by Punjab undermines Himachal’s sovereignty. However, Punjab’s refusal to transfer possession has now escalated the matter to the Supreme Court, drawing Haryana into the fray. Haryana’s claims are yet to be detailed publicly, but its involvement indicates further challenges in resolving the dispute.
As the case unfolds, the Supreme Court’s decision will likely set a precedent for disputes involving inter-state projects post-lease periods. With the involvement of multiple states and the central government, the Shanan project has become a litmus test for federal governance and resource-sharing in India. All eyes are now on the January 2025 hearing, where arguments from all parties will shape the fate of the historic power project.
