BBMB Power Dispute: Punjab and Haryana to Supply 11,973 Million Units of Electricity to Himachal Pradesh

The Supreme Court has approved the Centre’s proposal to settle the decades-old power dispute between Punjab, Haryana and Himachal Pradesh over outstanding electricity dues from Bhakra Beas Management Board (BBMB) projects. Under the approved arrangement, Punjab and Haryana will supply 11,973 million units (MU) of electricity to Himachal Pradesh over a period of 20 years.
 

A Bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana approved the Centre’s cashless settlement proposal, under which the outstanding dues will be cleared through the supply of electricity rather than monetary payments.
 

The dispute dates back to 1966 and concerns the distribution of electricity generated by the Bhakra-Nangal and Beas hydroelectric projects. The Supreme Court said the settlement would be implemented in accordance with its 2011 judgment, which recognised Himachal Pradesh’s entitlement to 7.19 per cent of the outstanding power generated by these projects since 1966.
 

As per the arrangement, Punjab and Haryana will jointly provide 11,973 million units of electricity to Himachal Pradesh within the stipulated 20-year period, thereby resolving the long-pending issue of outstanding power dues.
 

The three states had differing positions on the proposed settlement timeline. Punjab initially opposed the Centre’s proposal to clear the electricity dues over 15 years. It subsequently suggested extending the repayment period to 30 years.
 

Himachal Pradesh, meanwhile, had sought settlement of the outstanding dues within 10 years. The Supreme Court's approval of the 20-year arrangement provides a resolution to the decades-old dispute.