Shanan Dispute: A Three-State Battle

Introduction

The Shanan Hydel Power Project in Himachal Pradesh has become the center of a contentious legal battle involving three states—Himachal Pradesh, Punjab, and now Haryana. This multi-faceted dispute revolves around historical agreements, regional resource claims, and the interpretation of constitutional and legal provisions.

Haryana’s Claim: A New Development

Haryana recently approached the Supreme Court to assert its stake in the Shanan Hydel Power Project. It argues that:

  • The project, located on the Uhl River (a tributary of the Beas), plays a role in the Bhakra Dam, for which Haryana has a stake through the Bhakra Beas Management Board (BBMB).
  • The Punjab Reorganisation Act, 1966, establishes its historical connection as part of undivided Punjab.

This move has added complexity to an already heated legal dispute between Punjab and Himachal Pradesh.

Himachal Pradesh’s Stand

Himachal Pradesh opposes Haryana’s claim, emphasizing that the issue pertains exclusively to Punjab and Himachal. The state government plans to file objections during the Supreme Court hearing on January 15, 2024.
Key arguments by Himachal Pradesh include:

  1. Historical Context: The 1925 lease agreement between the ruler of the princely state of Mandi and the undivided Punjab government predates Haryana’s existence.
  2. Statehood Evolution: The princely state of Mandi, where the project is located, was never part of Punjab. It merged into independent India in 1948, became a Part C State in 1951, and achieved full statehood as Himachal Pradesh in 1971.
  3. End of Lease: The 99-year lease, signed in 1925, expired on March 2, 2024, terminating Punjab’s administrative rights over the project.

Punjab’s Counterarguments

Punjab has filed a civil suit seeking:

  • A permanent injunction to prevent Himachal Pradesh from taking over the project.
  • A temporary injunction to maintain the status quo.

Punjab argues that:

  • The project was allocated to it through a 1967 central notification under the Punjab Reorganisation Act, 1966.
  • The project has been operated by the Punjab State Power Corporation Limited (formerly the Punjab State Electricity Board) and contributes significantly to the region’s electricity needs.

The Historical Context of Shanan Hydel Project

The Shanan Hydel Power Project, commissioned in 1932, has a rich historical background:

  • It was constructed under a 1925 agreement between Jogendra Sen Bahadur, the then ruler of Mandi, and Colonel B.C. Batty, Chief Engineer of the undivided Punjab government.
  • The agreement allowed the project to utilize water from the Uhl River in exchange for 500 kW of free electricity for Mandi.
  • Initially, the project had a capacity of 48 MW, later expanded to 110 MW by Punjab.

Legal Complexities: The Role of the Supreme Court

Himachal Pradesh filed a petition on September 20, 2024, seeking the dismissal of Punjab’s civil suit. It argued that disputes arising from pre-Constitution agreements are outside the Supreme Court’s jurisdiction under Article 131 of the Constitution. The state further claimed that the 1925 agreement was a treaty between the British administration and the Mandi princely state, not Punjab.

In response, the Supreme Court issued a notice to Punjab, which has opposed Himachal’s claims. Haryana’s recent application has added another layer of complexity, making the resolution of this dispute even more challenging.

Significance of the Shanan Project

The Shanan Hydel Power Project is critical due to its strategic location and historical significance:

  • It utilizes the Uhl River, a tributary of the Beas, to generate electricity.
  • It is vital for regional electricity supply, contributing to the energy demands of northern states.
  • The project symbolizes the historical legacy of agreements during the colonial era and their implications in modern federal relations.

Himachal Pradesh’s Vision

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has consistently opposed the renewal of the lease. This aligns with demands from local residents and political leaders, who argue that the project’s benefits should remain with Himachal, as it relies on the state’s natural resources.

Conclusion

The Shanan Hydel Power Project dispute highlights the complexities of federalism, resource sharing, and historical agreements in India. It underscores the need for a balanced resolution that respects historical contexts, state rights, and equitable resource distribution. The upcoming Supreme Court hearings will play a decisive role in determining the future of this significant hydel project.

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