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Recently Haryana has added a new dimension to the ongoing legal dispute between Himachal Pradesh and Punjab over the British-era 110 MW Shanan Hydel Project. 

About the Shanan hydel project

• The project was commissioned in 1932, it is India's first megawatt-capacity hydroelectric project.
• It is located in Joginder Nagar in Mandi District, Himachal Pradesh.
• It is built on the Uhl River, a tributary of the Beas.
• Issue: Leased to Punjab for 99 years in 1925, agreement expired March 2024; Himachal Pradesh is now seeking ownership, saying the land originally belonged to it.
• Present Status: Under the control of Punjab, Himachal is seeking support from the Center to ensure transfer of the project.

What is the dispute between Punjab and Himachal Pradesh?

Historical background: During the British era in 1925, Punjab was granted a lease for a 110 MW hydroelectric project located in Jogindernagar, Mandi district of Himachal Pradesh on the Uhl River, a tributary of the Beas River.

Lease Agreement: The lease was formalized between Raja Joginder Bahadur, the then ruler of Mandi, and Colonel BC Batty, who represented the British government and served as the Chief Engineer of the Punjab.

Project Utilities

• The hydroelectric project served the energy needs of undivided Punjab and Delhi before India gained independence.
• After partition, the supply to Lahore was stopped and the transmission line was terminated at Verka village in Amritsar.

Legal control under the Punjab Reorganization Act, 1966

• During the reorganization of states in 1966, the hydroelectric project was transferred to Punjab as Himachal Pradesh was then designated as a Union Territory.
• Punjab was officially allotted the project through a central notification issued on 1 May 1967 by the Union Ministry of Irrigation and Power.
• The notice said that Punjab's legal control over the project was governed by the provisions contained in the Punjab Reorganization Act, 1966.

Eligibility for Himachal Pradesh

• Before the 1925 lease that granted the project to Punjab, Himachal Pradesh had both ownership and operating rights to the project.
• The 1925 lease gave Punjab only operating rights for a certain period, not ownership rights.
• For the past few years, Himachal Pradesh has maintained that the project should remain with it even after the lease ends.
• The Himachal Pradesh government has expressed concern, saying the project is in a deteriorating condition due to lack of repairs and maintenance by Punjab.
• The Himachal Pradesh chief minister had said he would not allow Punjab to lay claim to the project after the lease period had expired and had written to his Punjab counterpart last year and had also taken up the issue with the Union Ministry of Power.

Claims of Punjab

• Punjab took its case to the Supreme Court claiming that it was the rightful owner and in legal possession of the Shanan Power House Project as per the 1967 Central Notification.
• The State Government, through the Punjab State Power Corporation Ltd (PSPCL), currently exercises control over all the assets associated with the project.

Required Legal Actions

• Under Article 131, the Punjab government sought a "permanent ban" from the Supreme Court.
• The order is to prevent the Himachal Pradesh government from interfering with the "lawful peaceful possession and smooth functioning" of the Project.

Interim measures ordered by the Centre

A day before the conclusion of the 99-year-old lease, the Central Government intervened by issuing an order to maintain the current status of the Project. This measure was implemented to ensure the continuous operation of the project.

The directive was issued by the Ministry of Power. She invoked the powers conferred by Sections 67 and 96 of the Punjab Reorganization Act, 1966 read with Section 21 of the General Clause Act, 1887.

Future Implications

Interim Measures: The Centre's order is an interim measure to prevent disruption of the functioning of Shanan Power House until the dispute is resolved.

Legal Framework: Both parties are expected to proceed within the legal framework in settling a dispute, ensuring due process and fairness.

Regional Cooperation: A cooperative approach between Punjab and Himachal Pradesh, supported by federal authorities, could lead to a win-win solution and promote inter-state harmony.

READ IN DETAIL HERE

Shanan hydropower project

SHANAN POWER PROJECT

Source:

INDIAN EXPRESS