Shanan project: Apex court issues notices to Himachal Pradesh, Centre

New Delhi/shimla, March 4

Amid the Himachal Pradesh Government’s attempts to take control of the Shanan Hydropower Project from Punjab on the expiry of a 99-year lease, the Centre has asked both the states to maintain the status quo, the Supreme Court was informed on Monday.

“To be fair, the Union (of India) has on March 1 via a letter asked the parties to maintain status quo. I do not know if they can, but…,” Punjab Advocate General Gurminder Singh told a Bench led by Justice AS Oka.

Lease agreement inked in 1925

• The British-era project at Jogindernagar, 40 km from Palampur in HP, was constructed in 1925 under the lease executed between Raja Joginder Sen, the ruler of the then Mandi State, and Col BC Batty, a British representative
• The project, which used to feed the undivided Punjab, Lahore and Delhi before Independence, is said to be in a poor condition as the Punjab Government has allegedly stopped repairs

The Bench issued notices to the HP Government and the Centre on Punjab Government’s suit against HP’s attempt to take control of the project on the expiry of a 99-year lease. The Bench said it would first hear the prayer for interim relief.

The project, which used to feed the undivided Punjab, Lahore and Delhi before Independence, is said to be in a poor condition as the Punjab Government has allegedly stopped the repair and maintenance work.

During his recent visit to Delhi, Himachal Chief Minister Sukhvinder Sukhu had raised the issue with the Centre and demanded immediate transfer of the project to Himachal Pradesh before its condition went from bad to worse.

Meanwhile, Sukhvinder Singh Sukhu today said Himachal would fight the legal battle in the Supreme Court to get back the 110 MW Shanan power project from Punjab.

“We have received a letter from Centre, urging Himachal not to act regarding the takeover of the Shanan project from Punjab,” said Sukhu, while talking to mediapersons, here. He said the matter had been discussed at the Cabinet meeting and it had been decided to plead the case in the Supreme Court so that Himachal gets back the project along with all assets, he added.

Sukhu said the state government would try to resolve the matter by talking to the Punjab Government. The 99-year-old lease of the Shanan project got over on March 2 and Himachal was planning to take over the project.

Punjab State Power Corporation Ltd is at present running the Shanan powerhouse, located on the Uhl tributary. It was commissioned in 1932 and 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.

Officials said the project was given to Punjab on lease, which cannot be converted into ownership. As such, Himachal has a legitimate right over it, they added. Himachal had got the issue examined legally and placed the entire record before the Union Power Ministry almost six months back as it apprehended that Punjab would be reluctant to hand back the project.