BBMB power dues dispute resolved, Punjab and Haryana to supply electricity to Himachal
Settling the Bhakra Beas project dues, the Supreme Court has ordered Punjab and Haryana to provide 11,973 million units of electricity to Himachal Pradesh over the next 20 years.
The Supreme Court has resolved the decades-old inter-state dispute related to the power project dues of the Bhakra Beas Management Board (BBMB). The court has ordered Punjab and Haryana to provide 11,973 million units of electricity to Himachal Pradesh over the next 20 years.
A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohana accepted the central government's proposal to clear the dues in the form of electricity instead of cash payment. This decision has ended the long-running deadlock among the three neighboring states.
This matter dates back to the Punjab Reorganisation Act of 1966. In 2011, the Supreme Court held Himachal Pradesh entitled to a 7.19 percent share of electricity from the Bhakra Nangal and Beas projects. Himachal started receiving this share from November 2011, but the legacy dues from 1966 to 2011 remained pending from Punjab and Haryana.
According to the Central Electricity Authority, the total dues amounted to 13,066 million units. Out of this, liabilities towards Himachal Pradesh for project construction costs were approximately Rs 420.7 crore, of which Rs 249.2 crore were to go to Punjab and Rs 171.5 crore to Haryana.
As per the Centre's formula at the rate of Rs 3.85 per unit, 1,093 million units of electricity have been deducted against that expense. Following this deduction, the remaining 11,973 million units of electricity will be given to Himachal Pradesh, and it will not have to make any separate payment now.
There was no mutual consensus among the states regarding the period for returning the dues. Himachal Pradesh wanted these dues in 10 years, while Punjab demanded 30 years. A 15-year proposal was put forward by the Centre, but the court, striking a balance, has fixed a period of 20 years for this.
Key developments
- Supreme Court asked Punjab and Haryana to give 11,973 million units of power to Himachal
- These dues will be given as installments over the next 20-year period
- Court approved central government's suggestion to pay in electricity instead of cash
- Construction cost of Rs 420.7 crore of Himachal's share was deducted from the power quota
