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Punjab moves SC against HP’s bid to take over Shanan project

Apex court to hear the suit on Monday even as the 99-year lease of the 110-MW hydel project in HP expires on March 2

Updated on: Mar 2, 2024, 05:54:09 IST
By , New Delhi
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The Supreme Court will hear on Monday a suit filed by the Punjab government to restrain Himachal Pradesh government from taking over a 110-MW Shanan hydel power project on expiry of its 99-year lease period on March 2.

The Shanan hydel power project, commissioned in 1932, is located at Jogindernagar in Mandi district of Himachal. (File)
The Shanan hydel power project, commissioned in 1932, is located at Jogindernagar in Mandi district of Himachal. (File)

A bench headed by Chief Justice of India (CJI) Dhananjaya Y Chandrachud said the matter will be taken up on Monday after Punjab additional advocate general Shadan Farasat mentioned the suit for urgent listing. As the lease expires on March 2, Farasat requested the apex court to ensure the matter does not get deleted from the list.

The hydel project, commissioned in 1932, is located at Jogindernagar in Himachal and the Sukhvinder Singh Sukhu government has indicated that it will not be extending the lease owing to strong demands by the local residents and political leaders who claim that since the project uses the water resources of one state, its benefits should not flow to another state.

The lease agreement was signed in 1925 between Jogendra Sen Bahadur, then ruler of Mandi state, and Colonel BC Batty, the then chief engineer of undivided Punjab government. 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 before the Supreme Court has been filed by Punjab through its secretary (power and energy), seeking to injunct the neighbouring state of Himachal Pradesh from taking over the project. The Union government has also been made a party by Punjab.

The suit 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 Shanan Power House 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.