The ongoing legal battle between Himachal Pradesh and Punjab over the pre-Independence-era 110 MW Shanan Hydel Power Project has taken a new turn with Haryana filing an application in the Supreme Court to become a party in the case. Both Himachal Pradesh and Punjab have been staking their claims on the project.
In its application submitted on December 12, Haryana argued that the Shanan project, located on the Uhl River—a tributary of the Beas—also feeds the Bhakra Dam. As Haryana has a stake in the Bhakra Beas Management Board (BBMB), it contends that it has a legitimate claim to the project. Haryana’s application also cites the Punjab Reorganisation Act, 1966, asserting its historical connection as a part of undivided Punjab.
Himachal Pradesh Advocate General Anup Kumar Rattan said, “We have decided to oppose Haryana’s move to claim a share in the Shanan project. This is a core issue between Punjab and Himachal Pradesh. As far as we know, Punjab will also oppose Haryana’s application. Himachal Pradesh will file its objection in the Supreme Court on January 15, the date of the next hearing.”
The Shanan Hydel Project, commissioned in 1932, is situated in Jogindernagar, Himachal Pradesh. A 99-year lease for the project was signed in 1925 between Jogendra Sen Bahadur, the then ruler of the princely state of Mandi, and Colonel B.C. Batty, Chief Engineer of the undivided Punjab government. The agreement allowed the project to use water from the Uhl River in exchange for 500 kW of free electricity for Mandi.
The lease expired on March 2, 2024. A day earlier, the central government issued an order to maintain the status quo to ensure uninterrupted operations. By then, Punjab had already approached the Supreme Court to prevent Himachal Pradesh from taking over the project. Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has consistently argued that Punjab’s claim ended with the expiration of the 99-year lease.
On September 20, Himachal Pradesh filed a petition in the Supreme Court seeking the dismissal of Punjab’s civil suit. The state argued that its case should be heard first, citing legal provisions under Order 7, Rule 11 of the Code of Civil Procedure, 1908. The Supreme Court issued a notice to Punjab on September 23, to which Punjab later filed a reply opposing Himachal Pradesh’s claim.
Himachal Pradesh stated in its application: “The entire foundation of Punjab’s case relates to a dispute arising from a pre-Constitution treaty or agreement. Such disputes are not within the jurisdiction of this Hon’ble Court under Article 131 of the Constitution. The 1925 agreement between the British Government and the Raja of Mandi forms the basis of the dispute.” It further asserted, “The Mandi State was never part of Punjab. It merged into independent India in 1948 and became a Part C State in 1951. Himachal Pradesh was later declared a Union Territory in 1956 and a full-fledged state in 1971. Punjab has no cause of action under the Punjab Reorganisation Act, 1966.”
Punjab, in its civil suit, argued, “The government of Punjab seeks a permanent injunction to restrain the Himachal Pradesh government from disturbing the lawful possession and functioning of the Shanan Power House Project.” Punjab claimed that the project, managed by the Punjab State Power Corporation Limited (formerly the Punjab State Electricity Board), was allocated to it through a 1967 central notification under the Punjab Reorganisation Act, 1966. It has also sought a temporary injunction to maintain the status quo.
Initially commissioned as a 48 MW project, the Shanan Hydel Project’s capacity was later expanded to 60 MW and eventually to 110 MW by Punjab to meet growing electricity demands.
The Himachal Pradesh government, under Chief Minister Sukhu, has reiterated that the lease will not be renewed. This decision aligns with demands from local residents and political leaders, who argue that since the project uses Himachal’s water resources, its benefits should remain with the state.
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