NEW DELHI, November 6 (Aalimi Nation) – The Supreme Court on Friday brought to a close a dispute over electricity dues that has been before the courts for decades, directing Punjab and Haryana to supply Himachal Pradesh with about 11,973 million units of power over 20 years instead of paying the arrears in cash.
The order was passed by a bench headed by Chief Justice Surya Kant and comprising Justices Joymalya Bagchi and V. Mohana, in a case titled State of Himachal Pradesh versus Union of India and others. The court disposed of the suit.
How the dispute began
Himachal Pradesh moved the Supreme Court in 1996 under Article 131 of the Constitution, which covers disputes between states and the Centre. It sought its rightful share of power from the Bhakra-Nangal and Beas hydroelectric projects. A judgment delivered in 2011 entitled the hill state to 7.19 per cent of the power attributable to the erstwhile composite state of Punjab.
Disagreements then followed over how much was owed in arrears, which tariff applied and what the states owed towards the capital cost of the projects. According to the court record, the Union government calculated Himachal Pradesh's arrears for the period from November 1, 1966, to October 2011 at 13,066 million units.
What the court has directed
The Union government had proposed settling the arrears in kind rather than in money, spread over 15 years. Himachal Pradesh had sought a shorter period of 10 years, while Punjab had asked for 30 years. The court settled on 20 years.
Under the order, Punjab and Haryana are to supply the electricity at roughly 598 million units a year during the October-to-March lean season. Himachal Pradesh's 7.19 per cent share of the capital cost, assessed at ₹420.77 crore, is to be adjusted against the energy arrears. For that adjustment the electricity has been valued at ₹3.85 per unit, which works out to roughly 1,093 million units. As a result, Himachal Pradesh will not have to pay money to either state for the arrears.
The state will, however, pay the charges fixed by the Bhakra Beas Management Board for the year in which each tranche of electricity is received.
Objections rejected
Punjab had argued that the arrears should be reduced to account for additional power it said had already been supplied to Himachal Pradesh, and that the capital-cost liability should be worked out differently. The court described these objections as "vague and superficial" and said they amounted to an attempt to reopen issues settled by the 2011 decree. Haryana had also raised objections to the extent of its own liability.
The bench described it as "particularly unfortunate" that the matter had remained pending for several decades. It added that its directions are binding and "required to be acted upon without reservation".
Why it matters
The dues arise from projects managed by the Bhakra Beas Management Board. Himachal Pradesh's claim relates to power from the projects for the period beginning November 1, 1966, according to the figures placed before the court.
The order does not change the percentage shares fixed in 2011. It provides a method and a timetable for clearing the accumulated arrears. The judgment does not alter the underlying entitlement; it settles how the accumulated dues are to be cleared.
