Power Project Dispute: Haryana Enters Legal Battle Between Himachal Pradesh and Punjab

A longstanding power project dispute has escalated dramatically, with Haryana becoming the latest state to stake a claim in the Supreme Court, transforming what was initially a bilateral conflict between Himachal Pradesh and Punjab into a more complex multi-state legal confrontation.

Historical Origins of the Project

The Shanan Hydel Project is situated in Jogindernagar, Himachal Pradesh, dates back to 1932. Originally established through a 99-year lease signed in 1925 between the Mandi princely state's ruler and undivided Punjab's chief engineer, the project has deep historical roots. 

Current Legal Landscape

The project's lease expired on March 2, 2024, triggering the current dispute. Just a day before expiration, the central government issued an order to maintain the status quo, preventing any unilateral action.

Key Stakeholders' Positions

Himachal Pradesh claims the 99-year lease's expiration terminates Punjab's rights over the project. Himachal argues Mandi was never part of Punjab. Himachal Pradesh filed a Supreme Court petition on September 20, 2024 regarding this matter. 

Punjab seeks a permanent injunction to maintain project control and argues the project was allocated through a 1967 central notification Contests Himachal Pradesh's ownership claims.

Haryana newly entered the dispute seeking a stake in the project and leveraging historical administrative connections.

Haryana's Strategic Intervention 

Haryana has entered the legal battle with two primary arguments:

1. The project supplies water to the Bhakhra Dam, in which Haryana has a stake through the Bhakhra Beas Management Board (BBMB)
2. Historical connections to undivided Punjab through the 1966 Punjab Reorganization Act. 

Project Evolution

The Shanan Hydel Project has undergone significant capacity expansions as intially it was 48 megawatts and further expanded to 60 megawatts and currently operational at 110 megawatts. The next hearing of the case is scheduled for January 15, 2024, where Himachal Pradesh will formally register its objections to the emerging multi-state dispute.