Himachal Pradesh to Gain Rs 800 Crore Yearly After Landmark SC Ruling

Himachal Pradesh anticipates an annual revenue boost of up to Rs 800 crore after the Supreme Court ordered the release of its long-pending electricity share from the Bhakra Beas Management Board, settling a legal dispute pending since 1996.

Supreme Court Ruling Boosts State Finances

Himachal Pradesh is expected to gain between Rs 600 crore and Rs 800 crore annually following a landmark Supreme Court verdict directing the Bhakra Beas Management Board (BBMB) to release the state's long-pending share of 11,973 million units of electricity, Advocate General Anup Kumar Rattan said on Friday.

Addressing a press conference in Shimla, Rattan described the Supreme Court's decision as a 'Diwali gift' to Himachal Pradesh, saying the verdict would significantly strengthen the state's financial position and ensure long-term economic benefits. He said the dispute over Himachal Pradesh's share in BBMB projects had been pending before the Supreme Court since 1996.

Strategic Decision on Electricity Gains

While the state was earlier expected to receive monetary compensation in lieu of its share, Chief Minister Sukhvinder Singh Sukhu decided that Himachal should receive electricity instead of cash, considering the rising demand for power and prevailing market rates. Rattan said the state government had also ensured that the electricity would be supplied during the October-March period, when power demand and market prices generally remain high in Himachal Pradesh. This would enable the state to sell surplus electricity at better rates and maximise its revenue.

"Even if we calculate the average price of electricity at ₹10 per unit, Himachal Pradesh stands to gain between ₹600 crore and ₹800 crore annually. Over the next 20 years, the total benefit could reach approximately ₹15,000 crore," he said.

The Advocate General said the earlier proposal prepared by the Centre did not adequately safeguard Himachal's interests, as it envisaged monetary compensation based on different rates. The Chief Minister, however, strongly advocated receiving the state's legitimate share in the form of electricity. He said the Supreme Court had directed the BBMB to release Himachal Pradesh's electricity share with immediate effect, including the arrears pertaining to the previous period.

Kishau Dam and Legal Developments

Referring to the Kishau Dam project, Rattan said it comprised two components — the water component and the power component. Under the existing arrangement, the Centre had provided for sharing the expenditure on the water component in a 90:10 ratio, while the cost of the power component was to be equally borne by Himachal Pradesh and Uttarakhand. However, Chief Minister Sukhu opposed the financial burden on Himachal Pradesh, arguing that the state would have to surrender its land and its people would face displacement for the project. Therefore, he questioned why Himachal should also bear half the construction cost of the power component.

Rattan said that during discussions on the Kishau Dam project, the Chief Minister had also made it clear to Haryana that the state's interests in the BBMB dispute should be supported. Subsequently, the Haryana government agreed with the Attorney General of India's note before the Supreme Court, strengthening Himachal Pradesh's legal position in the matter. He said the Punjab government continued to oppose Himachal's claim until the final stage, but the Supreme Court did not accept its objections.

Describing the verdict as a major achievement for the state, Rattan credited the Chief Minister's efforts and political leadership for securing Himachal Pradesh's long-pending electricity entitlement. He said the decision would not only provide immediate financial relief but also create a substantial and sustainable revenue stream for the state in the coming years.

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