Shanan Power Project Ownership: Punjab’s Legal Stand Against Himachal’s Claims
Chandigarh, April 18, 2025: In a recent development concerning the Shanan Power Project, Punjab’s Power Minister, Harbhajan Singh ETO, has firmly stated that the project remains under the ownership of Punjab, dismissing claims made by Himachal Pradesh Deputy Chief Minister, Mukesh Agnihotri.
Background of the Dispute
The Shanan Power Project, located in Jogindernagar, Himachal Pradesh, was established in 1925 under a 99-year lease agreement between the then ruler of Mandi, Raja Joginder Singh Bahadur, and British engineer Colonel BC Batty. With the lease expiring recently, Himachal Pradesh has expressed intentions to assume control of the project.
However, Punjab maintains that the project was allocated to it following the reorganization of states in 1966. According to the Punjab Reorganization Act of 1966, assets and liabilities were distributed among the reorganized states, with the Shanan Power Project assigned to Punjab. This allocation was further supported by a notification from the Government of India on May 1, 1967, which confirmed Punjab’s rights over the project .
Minister Harbhajan Singh ETO’s Statement
Minister ETO criticized Agnihotri’s remarks, urging him to verify the facts before making public statements. He emphasized that the Shanan Power Project is legally owned by Punjab, citing the provisions of the Punjab Reorganization Act and subsequent notifications. ETO also highlighted that the Government of India had previously rejected Himachal Pradesh’s claims over the project in 1987, reinforcing Punjab’s rightful ownership.
Himachal Pradesh’s Position
Contrastingly, Himachal Pradesh argues that the project should revert to it following the expiration of the lease. Chief Minister Sukhvinder Singh Sukhu has called for the transfer of the project, asserting that the area where the project is located was never part of Punjab, and thus, the Punjab Reorganization Act does not apply .
Legal Proceedings and Central Government’s Role
In light of the conflicting claims, Punjab has approached the Supreme Court seeking a permanent injunction to prevent Himachal Pradesh from taking control of the Shanan Power Project. The Central Government has intervened by ordering the maintenance of the status quo until a final decision is reached, ensuring that the project’s operations continue without disruption .
Conclusion
The dispute over the Shanan Power Project underscores the complexities arising from historical agreements and the reorganization of states. As legal proceedings unfold, both Punjab and Himachal Pradesh await a definitive resolution from the Supreme Court to determine the rightful ownership of the project.