Himachal submits Shanan project record to Centre; prepares ground to get control of powerhouse from Punjab

Pratibha Chauhan

Shimla, June 1

The state government, after seeking legal opinion on the issue of the transfer of the 110 MW Shanan Powerhouse in Jogindernagar of Mandi district, has placed its entire record before the Union Power Ministry.

On 99-year lease

• Punjab State Power Corporation Ltd is at present running the Shanan powerhouse, located on the Uhl tributary, 2 km from Jogindernagar in Mandi district
• Commissioned in 1932, the powerhouse was constructed as per a 99-year lease executed between Raja Jogendra Sen, the then king of Mandi, and Col BC Batty, Chief Engineer of the Punjab Government, in 1925

The 99-year lease of this British era powerhouse, which was commissioned in 1932, will end in March 2024. Himachal has already started preparing the ground to ensure that the ownership of the Shanan project remains with it, as it can generate an annual income of Rs 200 crore. There is a possibility of a dispute arising between the two neighbouring states over the ownership of the project. Punjab is claiming that it got the project under the Punjab Reorganisation Act 1966.

A senior official says, “The project located in Himachal was given to Punjab on lease, which cannot be converted into ownership. As such, Himachal has a legitimate right over it.” He adds that Himachal has already got the issue examined legally and placed the record before the Union Power Ministry to ensure that there is no dispute.

Sources say that to strengthen its claim, Himachal has cited the example of Jharkhand, which was carved out of Bihar, in the sharing of assets between the two states. “Punjab was allowed to run and manage the Shanan powerhouse in 1966, when reorganisation of the state took place, as Himachal did not have a state electricity board. The powerhouse is still on lease,” says the official.

The issue of poor upkeep and maintenance of the Shanan powerhouse has remained a sore point between Himachal and Punjab. The Punjab Government has not spent money on the maintenance of the project, the lease period of which will end in March 2024.