Tussle Over British-Era Hydropower Project Lease: Himachal Pradesh And Punjab Governments Lock Horns

The dispute between Punjab and Himachal Pradesh regarding the Shanan Hydropower Project lease continues as the HP government has affirmed its refusal to compromise on the 99-year-old lease of the British-era 110 Megawatt project in the hill state's Jogindernagar.

The Punjab Government currently controls the project, but its lease will be ending in March 2024.

Meanwhile, the Himachal Pradesh Government has announced that they will not be renewing or extending the lease, and instead want the project to be handed over to the state before the lease ends.

However, the Punjab Government is refusing to comply and is prepared to take legal action if necessary to keep the project under their authority.

During the visit of Union Power Minister R K Singh to Himachal on Friday (9 June), state CM Sukhvinder Singh Sukhu urged him to complete the time-bound transfer of the Shanan Hydroelectric Project to the state, along with other matters. The Union Pow

Sukhu informed the Union Minister about the Shanan hydel project's ownership issues and the lease period which ends in March 2024.

"I apprised him that the ownership rights of the Shanan project do not rest with the Punjab Government as it was only given on lease to the Punjab Government,” said Sukhu, reports The Hindu.

Sukhu added that the Union Minister had assured that he would address all the issues in a time-bound manner.

Earlier, in a letter addressed to Punjab Chief Minister Bhagwant Mann, Sukhu had informed that the 99-year-old lease of the Shanan power project, which was given to Punjab by Raja Joginder Singh Bahadur of Mandi, would be ending on 2 March 2024.

The letter added that Himachal government has decided against renewing or extending the lease period and instead intends to take over the project.

It is worth noting that the 110 MW Shanan power project was planned back in 1922 by Col. Battye during his tenure as the Chief Engineer of the then government of Punjab.