99-year lease expired on March 2: Apex court to hear Punjab’s suit on Shanan project transfer on April 8

Punjab advocate general Gurminder Singh appearing along with state’s additional advocate general Shadan Farasat informed the court about the March 1 letter issued by the Union government conveying both the state governments to maintain “status quo”

The Supreme Court will take up on April 8 the application by the Punjab government seeking to restrain the Himachal Pradesh government from taking possession of 110-MW Shanan hydel project on expiry of its 99-year lease period on March 2.

Situated in HP’s Jogindernagar, the Shanan powerhouse is one of the oldest that used to feed the entire undivided Punjab and Delhi before Independence. (File)

Issuing summons on the suit filed by the state of Punjab against the state of Himachal Pradesh and Centre, a bench of justices AS Oka and Ujjal Bhuyan was informed that the Union government had ordered “status quo” with regard to possession of the British-era hydel project.

Punjab advocate general Gurminder Singh appearing along with state’s additional advocate general Shadan Farasat informed the court about the March 1 letter issued by the Union government conveying both the state governments to maintain “status quo”. The state said while it is in dispute whether the Centre can issue such an order, “to be fair, Union letter of March 1 has asked parties to maintain status quo,” the Punjab advocate general said.

“We will first hear the interim relief prayer,” the bench observed while admitting the suit for hearing and fixing the next date of hearing on April 8.

The suit was mentioned for urgent listing on Friday as the lease period of the project ended on March 2 and the Sukhvinder Singh Sukhu government indicated that the lease of the plant, situated at Jogindernagar in Himachal, will not be extended.

Commissioned in 1932, the Shanan hydroelectric powerhouse was built under a 99-year lease between Joginder Sen, the then king of Mandi state, and British engineer Col BC Batty in 1925. During the reorganisation of states in November 1966, the powerhouse was given to Punjab. The hydel project has remained in controversy owing to strong demands by local residents and political leaders to ensure the benefits from the project are given to residents in the state where it is situated.

Situated in HP’s Jogindernagar, the Shanan powerhouse is one of the oldest that used to feed the entire undivided Punjab and Delhi before Independence. As per the agreement, water for the project was to be utilised from Uhl river, a tributary of Beas River, in lieu of which the state would receive 500kW free electricity.

The project was originally envisaged to be a 48-MW capacity project. Over the years, the Punjab government has enhanced its capacity to 60 MW and later 110 MW to meet the growing demands of electricity in the state of Punjab.

The suit filed by Punjab through its secretary (power and energy), said, “The instant suit is being filed on behalf of the government of Punjab seeking relief of permanent prohibitory injunction for restraining defendant 1 (HP government) from disturbing the lawful-peaceful possession and smooth functioning over the Shanan power house project as the plaintiff (Punjab) is the owner and is in lawful possession of the project and its extension project along with all assets.”

In addition, the suit seeks the status quo to be maintained and sought “temporary injunction” against dispossession.

The state has claimed that Shanan project is “managed and controlled by Punjab” through Punjab State Power Corporation Limited (erstwhile Punjab State Electricity Board) allocated to the state by a central notification issued on May 1, 1967, by central ministry of irrigation and power. It added that Punjab’s legal control over the project is under the provisions of the Punjab Reorganisation Act, 1966, read along with the 1967 notification.

This powerhouse was constructed against the backdrop of dense deodar forests with a four-stage haulage rail network starting from Jogindernagar up to Barot. The British had also laid a narrow gauge rail line between Pathankot and Jogindernagar to transport heavy machinery to the Shanan complex.

British-era poles carrying transmission lines are still standing tall in Majha region. After partition, supply to Lahore was discontinued and its transmission line was stopped at Verka village in Amritsar. These poles are made of good quality steel said to be imported from a foreign country during British empire are still in good condition.

The Himachal Pradesh government on Monday said it would challenge the Union government’s order cautioning the state government against reclaiming possession.

Chief minister Sukhvinder Singh Sukhu affirmed the state’s commitment to reclaiming possession of the project despite the Union government’s directive to halt proceedings.

“Our government will make every bid to take back Shanan project. We will challenge the Union government’s notification in court,” Sukhu said. The chief minister also holds the power portfolio.