Shanan Power Project Dispute: Why Himachal Deserves Its Due
How can Himachal Pradesh relinquish its claim over a project that generates ₹200 crore annually? The 99-year lease of the Shanan Power Project in Joginder Nagar, Mandi district, expired in March 2024, making it time for Punjab to hand over the project to Himachal. However, the neighboring state has created legal hurdles, with the matter now pending in the Supreme Court. The hearing is scheduled for January 2025.
The Historic Lease Agreement
The Shanan Power Project has roots dating back to 1925, during British rule. Raja Jogendra Sen of the Mandi princely state signed a 99-year lease agreement with the British government, providing land for the project. At that time, Punjab was responsible for managing the project. When the lease expired in March 2024, it was expected that the project would be returned to Himachal Pradesh, the rightful owner of the land.
Himachal’s Legal Fight
The Himachal government has approached the Supreme Court to reclaim its rights over the Shanan Power Project. While Punjab is resisting the handover, Haryana has also sought to be heard in the case, citing its inclusion in the Punjab Reorganization Act of 1966. Himachal has objected, stating that the project does not fall within Haryana’s jurisdiction, and thus the state has no legal standing in the matter.
Advocate General Anoop Ratan has argued that the 1925 lease agreement, signed between the Mandi King and the British government, cannot be challenged. The Punjab government, not being a signatory to the agreement, lacks the authority to contest it. The Supreme Court, prima facie, agrees with Himachal’s stance.
Punjab’s Pushback
Despite the lease’s expiry, Punjab filed a petition to retain control over the project, claiming management rights under the Punjab Reorganization Act. In response, Himachal contested the petition’s maintainability, asserting that the land and project were never part of the territories transferred under the Act. In September 2023, the Supreme Court issued a notice to Punjab, asking for its reply.
Himachal’s Preparations
Chief Minister Sukhwinder Singh Sukhu has been proactive in ensuring Himachal’s interests are protected. He has engaged with Union Energy Minister Manohar Lal Khattar, who has assured Himachal of the Centre’s neutrality in the matter. The state government has also strategically highlighted its legal and historical claim to the project.
The Stakes for Himachal
The Shanan Power Project, which currently has a capacity of 110 MW, is a significant revenue generator, earning ₹200 crore annually. Losing control over this project would be a major setback for Himachal’s economy. CM Sukhu has appealed to Punjab to act as a “big brother” and hand over the project. Experts like former Finance Secretary KR Bharti and senior journalist Dhananjay Sharma also believe that Himachal has a strong case and will eventually regain control.
Haryana stakes claim
The legal battle took a new turn when Haryana filed an application with the Supreme Court, seeking to join the case and assert its claim over the project. Advocate General Anup Rattan stated that Haryana’s involvement adds further complexity to an already disputed matter. The Union of India has also submitted its response to the court regarding the issue.
Conclusion
The Shanan Power Project dispute is not just about legalities; it is about fairness and upholding agreements. Himachal Pradesh has every right to reclaim the project, and while the legal battle continues, the state is determined to secure what is rightfully its own. With the matter in the Supreme Court, the coming months will determine whether justice is served for Himachal in this ₹200-crore case.
