The Supreme Court has brought an end to a protracted inter-State dispute over Himachal Pradesh’s share in electricity generated by the Bhakra-Nangal and Beas hydroelectric projects, finalising a mechanism to operationalise the State’s 7.19% entitlement.
A three-judge Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana approved a cashless settlement formula arrived at following consultations facilitated by Attorney General R. Venkataramani, with the participation of Himachal Pradesh, Punjab and Haryana.
As per the arrangement endorsed by the Court, Himachal Pradesh will receive 11,973 million units (MU) of electricity from Punjab and Haryana over a period of 20 years.
The State’s original electricity entitlement had been assessed at 13,066 MU by the Central Electricity Authority. However, the final settlement accounts for an adjustment of ₹420 crore towards the historical capital expenditure incurred in the construction of the dams.
The duration for implementing the entitlement had emerged as a point of disagreement among the States. While Himachal Pradesh advocated for the entire allocation to be delivered within 10 years, Punjab sought a 30-year timeframe. The Attorney General had suggested a 15-year implementation period. After considering the competing positions, the Supreme Court settled on a 20-year schedule.
The decision provides a framework for giving effect to the Supreme Court’s 2011 decree, bringing closure to a dispute that had remained unresolved for several decades. Significantly, the arrangement avoids inter-State monetary transfers and instead provides for the adjustment to be reflected through the electricity allocation mechanism.
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