Supreme Court settles BBMB electricity dues dispute, Punjab and Haryana to supply Himachal Pradesh 11,973 MU over 20 years

Key facts

• The Supreme Court, in a bench headed by Chief Justice of India Surya Kant with Justices Joymalya Bagchi and V Mohana, directed Punjab and Haryana to provide Himachal Pradesh 11,973 million units (MU) of electricity over 20 years to settle unpaid dues from Bhakra Beas Management Board (BBMB) projects.
• The settlement accepted the Centre's proposal to clear outstanding dues of 13,066 MU, calculated by the Central Electricity Authority (CEA), through an energy-based settlement instead of cash payment.
• The dues date back to 1966 and pertain to the period before November 2011, when Himachal Pradesh's 7.19 per cent share in electricity from the Bhakra Nangal and Beas hydroelectric projects was recognised by a Supreme Court verdict.
• The settlement factors in an adjustment of around Rs 420 crore towards Himachal Pradesh's share of historical capital costs of the dams, so the hill state need not make any separate payment to Punjab or Haryana.
• Under the 2011 verdict, Punjab's share in BBMB projects was fixed at 51.80 per cent, Haryana's at 37.51 per cent, Chandigarh's at 3.50 per cent, and Rajasthan's share largely remained unchanged.
• Himachal Pradesh was entitled to a share in the Bhakra project from November 1, 1966, the Dehar project from November 1977 and the Pong Dam project from January 1978.
• Himachal Pradesh had approached the Supreme Court in 1996 through an original suit after efforts to resolve the dispute, which stemmed from the Punjab Reorganisation Act, 1966, failed; the court passed a decree on September 27, 2011, upholding its 7.19 per cent entitlement.