Supreme Court settles BBMB power dispute, Himachal to get dues

The Supreme Court has delivered its verdict on the power dues issue pending between Punjab, Haryana and Himachal Pradesh since 1966. A three-judge bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana approved the cashless settlement formula presented by the central government.

Under this arrangement, Punjab and Haryana will provide 598 million units of electricity to Himachal Pradesh every year from October to March over the next 20 years. Thus, the old account will be settled by supplying a total of 11,973 million units of electricity, and no amount will be paid in cash in this matter.

The court has fixed a period of 20 years for the payment. Earlier, Himachal Pradesh wanted to take this quota in 10 years, while the Punjab government had appealed to drag this process up to 30 years. The court bench clarified that these orders are completely binding on all parties and should be implemented without any hesitation.

The Central Electricity Authority had earlier calculated Himachal Pradesh's share at 13,066 million units. However, the capital expenditure of Rs 420 crore incurred by Punjab and Haryana during the construction of the dams was adjusted with the cost of electricity, reducing the total dues, after which Himachal will not have to bear any separate cost.

This dispute was regarding the 7.19 percent share of Himachal Pradesh in the Bhakra Nangal, Dehar and Pong dam projects of the Bhakra Beas Management Board (BBMB). In the year 2011, the Supreme Court had ruled in favour of Himachal, but a consensus was not being reached between the states regarding the recovery of dues generated between 1966 and 2011.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has termed this order as a major success for the state's interests. He said that this step could fetch an annual revenue of Rs 500 to 1,000 crore to the state, which will accelerate public welfare and development works.

Key developments

• Supreme Court settled power dispute by giving green signal to cashless formula suggested by Centre
• Punjab and Haryana will provide around 11,973 million units of electricity to Himachal Pradesh in 20 years
• Annual electricity of 598 million units will be given during the months of October to March
• Old expenses of Rs 420 crore on dam construction were adjusted within the electricity share