SC settles decades-old energy dispute, Himachal to get 11,973 MU electricity from Punjab, Haryana

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The Supreme Court said the arrangement will be as per a 2011 apex court verdict settling power dues arising out of Bhakra Nangal and Beas hydro projects since 1966 in favour of Himachal Pradesh at the rate of 7.19%. File.

The Supreme Court on Friday (November 6, 2026) brought the curtain down on a decades-long energy dispute between Punjab, Himachal Pradesh and Haryana over the payment of dues arising from Bhakra Beas Management Board projects since 1966.

A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana accepted the Centre’s cashless proposal on payment of dues in energy terms to Himachal Pradesh by Punjab and Haryana.

The Supreme Court said the arrangement will be as per a 2011 apex court verdict settling power dues arising out of Bhakra Nangal and Beas hydro projects since 1966 in favour of Himachal Pradesh at the rate of 7.19%.

It said Punjab and Haryana will pay Himachal Pradesh 11,973 million units of electricity over a period of 20 years.

Punjab government initially opposed the Centre’s proposal for payment of energy arrears in 15 years but later sought implementation of the plan over a period of 30 years, while Himachal Pradesh sought implementation within 10 years.

Under the proposal, an adjustment of ₹420 crore towards historical capital costs incurred in constructing the dams has been factored into the settlement, and Himachal Pradesh will not have to pay anything to Punjab and Haryana.

The original entitlement was calculated at 13,066 million units by the Central Electricity Authority.

According to the 2011 decision of the apex court, the share of Himachal was fixed at 7.19%, while that of Punjab and Haryana was fixed at 51.80% and 37.51%, respectively.

Rajasthan's share largely remained unaffected, while the share of Chandigarh was fixed at 3.50%.

According to the 2011 decision, Himachal was to get a share in the Bhakra project from November 1, 1966, the Dehar project from November 1977, and the Pong Dam project from January 1978.

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