A view of the Shanan hydroelectric power project in Mandi, Himachal Pradesh. Archive | Photo Credit: Special Arrangement

the government of Himachal Pradesh on Thursday (November 7, 2024) made it clear once again that it would not budge on its claim over the 99-year lease of the British-era 110 megawatt (MW) Shanan hydroelectric project situated in Jogindernagar of Himachal, which is currently under the control of the Punjab government.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu sought the help of the Union government to ensure the return of the Shanan Project from Punjab. He raised the demand during his meeting with Union Power Minister Manohar Lal in Shimla. The meeting was held to discuss various power and housing issues related to Himachal Pradesh.

Suhku said the lease period of the project in Punjab has ended and urged the Union government to intervene to ensure transfer of the project to Himachal Pradesh, along with all its assets. “The Shanan project area was never part of erstwhile Punjab, therefore, Punjab Reorganization Act, 1966 “It does not apply,” he stated.

The Chief Minister had earlier written a letter to Punjab Chief Minister Bhagwant Mann stating that the Himachal Pradesh government has decided not to renew or extend the lease period of the project and intends to take over the project. The 110 MW Shanan Power Project was conceived by Colonel Battye, the then Chief Engineer of the Punjab Government in the year 1922. The lease of the 99-year-old project was granted to Punjab by the then ruler of Mandi, Raja Joginder Singh Bahadur. Punjab, on the other hand, has made it clear that the matter is well resolved and is being analyzed unnecessarily.

Mr. Sukhu also urged the Union government to direct the Bhakra Beas Board to release 13.066 million units of outstanding power arrears due to Himachal Pradesh during the period from November 1996 to October 2011. He said that despite a Supreme Court ruling in favor of the State, Himachal Pradesh is yet to receive its due share from the affected States.

Mr Sukhu also raised the issue of royalties aligned with the state government’s energy policy, which calls for a royalty of 12% for the first 12 years, 18% for the next 18 years and 30% for the next 10 years in energy projects. He said private companies already comply with this policy and emphasized that central public sector companies should also follow it.