To get its due share from BBMB, HP seeks help of 16th Finance Commission

Shimla: To get its dure share of Rs 4,500 crore (outstanding arrear) from the Bhakra Beas Management Board (BBMB) and reclaim the 110 MW Shanan Hydel project at Joginder Nagar in Mandi district of Punjab, the Himachal Pradesh govt has sought the help of the 16th Finance Commission.
The state govt recently submitted a memorandum to the commission, requesting it to recommend to the Union govt to intervene in the matter.According to the memorandum, under Punjab Reorganisation Act, 1966, nearly 7.19% of the total population of the composite state of Punjab was transferred to Himachal Pradesh along with its territories.In 2011, the Supreme Court had adjudicated that Himachal Pradesh should receive 7.19% power share in all the BBMB projects. Thereafter, the BBMB started giving power share of 7.19% from the prospective date of Nov 1, 2011. However, arrears of 13,066 million units share, accumulated for the period Nov 1, 1966 to Oct 31, 2011 were still pending for release to the Himachal, by the BBMB due to litigation in the Supreme Court.
Due to the construction of projects by the BBMB in Himachal, many areas of state townships had to face rehabilitation and relocation; and even today, a large number of oustees have yet not been compensated even after a lapsed period of over 50 years, it said.
Through the memorandum, the state govt has requested the commission to recommend to the Union govt to intervene in the matter so that Himachal receives the outstanding arrears of about Rs 4,500 crore from the BBMB.
The memorandum further mentions that during the British era in 1925, the state of Punjab was granted a lease of the 110 MW Shanan Hydropower Project situated in Joginder Nagar area of Himachal’s Mandi district, on river Uhl, a tributary of the Beas River, for 99 years. The lease agreement was formalised between Raja Joginder Bahadur, the then ruler of Mandi, and the Punjab govt. The hydropower project served the energy needs of the undivided Punjab and Delhi before India gained independence.
It said that during the reorganisation of states in 1966, the hydropower project was transferred to Punjab, as Himachal Pradesh was then designated as a Union Territory and the state of Punjab was officially allocated the project through a central govt notification issued on May 1, 1967 by the Union ministry of irrigation and power. Before the lease of 1925, which granted the project to Punjab, Himachal Pradesh had both the ownership and operational rights over the project.
The memorandum added that the 99-year lease only granted operational rights to Punjab for a specific period and not the ownership rights, therefore, upon expiry of this 99 years lease (2024) the project should be transferred to the Govt of Himachal Pradesh. Presently, the central govt has ordered to maintain the status quo on the project. The transfer of the project to Himachal will augment non-tax revenues of the state to the tune of Rs 220 crore per annum, it added.
The state has requested the commission to give a suitable recommendation to the central govt, so that the 110 MW Shanan Hydel Project is effectively transferred to Himachal.