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Bhakra-Beas power projects
Punjab, Haryana owe Rs 1,497 cr to HP, Centre tells apex court
R Sedhuraman
Legal Correspondent

New Delhi, July 16
The Centre today informed the Supreme Court that Punjab and Haryana would have to pay a compensation of Rs 1,497.39 crore to Himachal Pradesh for short supply of electricity from Bhakra and Beas projects since 1966.

Appearing for the Centre, Additional Solicitor General Mohan Jain told a Bench comprising Justices AK Patnaik and MY Eqbal that alternatively Punjab and Haryana could compensate Himachal by allotting additional energy over a period of 30 years if they had any difficulty in making cash payment.

“The energy arrears for which Himachal Pradesh is entitled were computed for each of the BBMB projects separately for each financial year since 1.11.1996 to 31.10.2011 that is for a period of 45 years,” the Union Power Ministry said in an affidavit.

Punjab and Haryana would share the burden in the ratio of 58:42. The two states and HP sought two weeks’ time to respond to the affidavit which was granted by the SC.

Paying the compensation through additional allocation of power “would serve the dual purpose of compensating HP as well as lessening the impact on the people of Punjab and Haryana,” the Centre said.

The compensation includes a simple interest of 6 per cent. The compensation would come to Rs 1,525.62 crore if the calculation was on the basis of compound interest, the Centre said. The Centre has calculated the compensation on a directive issued by the SC in its September 27, 2011 judgment in HP’s original suit filed in 1996 seeking higher share of electricity from these power projects. HP had claimed a compensation of Rs 4,249 crore.

In the verdict, the SC substantially raised HP’s share of electricity from the Bhakra Nangal hydro power project with retrospective effect from 1966 and from the date of commissioning of Units I and II of Beas.

The Bhakra-Nangal project

  • Himachal would be entitled to an additional 6.095 per cent of the total production with effect from November 1, 1966 against 2.5 per cent it was been getting till then
  • If Rajasthan was excluded for the calculation purpose, the state’s share would go up 7.19 per cent of the total power generated
  • Chandigarh’s share would remain unchanged at 3.5 per cent

Beas projects

  • From Beas I project, Himachal would get 5.752 per cent from the date of commissioning of the project against 15 MW being made available now.
  • From Beas II, the hilly state would get 2.984 per cent against ‘nil’ share now.





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