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The Supreme Court on Friday directed the States of Punjab and Haryana to supply approximately 11,973 million units (MU) of electricity to Himachal Pradesh over a period of 20 years, thereby bringing to a close a decades-long dispute over the sharing of power generated from the Bhakra-Nangal and Beas hydroelectric projects.

A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana directed the two States to supply the power arrears at the rate of approximately 598 million units per annum during the lean seasons (October to March).

The Court also directed that Himachal Pradesh's liability towards its 7.19% share of the capital cost of the projects, assessed at ₹420.77 crores, be adjusted against the energy arrears. For this purpose, the electricity shall be valued at ₹3.85 per unit, resulting in an adjustment of approximately 1,093 million units.

The directions were issued in a suit instituted by Himachal Pradesh in 1996 under Article 131 of the Constitution, seeking its rightful share in the electricity generated from the two hydroelectric projects.

The Court had, in its 2011 judgment, declared Himachal Pradesh entitled to 7.19% of the power attributable to the erstwhile composite State of Punjab. However, the implementation of the decree led to further disputes concerning the quantum of arrears, the applicable tariff and the capital-cost liabilities of the States.

The Union of India had computed Himachal Pradesh's total energy arrears at 13,066 million units for the period from November 1, 1966, until October 2011. It proposed that the arrears be supplied in kind over 15 years, with the capital-cost liability being adjusted against the energy entitlement.

Punjab disputed the computation, contending that the arrears should be reduced after accounting for the additional power supplied to Himachal Pradesh and that the capital-cost liability should be calculated differently. Haryana also raised objections concerning the quantum of its liability.

The Supreme Court, however, rejected Punjab's objections, observing that they were “vague and superficial” and amounted to an attempt to relitigate issues already settled by the Court's 2011 decree.

The Court observed that the dispute had remained unresolved for several decades despite successive efforts by the Union of India to facilitate a settlement.

“ It is particularly unfortunate that a dispute which has remained pending for several decades continues to be prolonged, requiring further judicial time and attention,” the Court remarked.

While the Union of India had proposed a 15-year period for the supply of arrears, the Court extended the period to 20 years to ease the burden on Punjab and Haryana and bring the longstanding dispute to a close.

The Court further directed that Himachal Pradesh shall pay the charges determined by the Bhakra Beas Management Board for the year in which each tranche of electricity is received.

Emphasising the binding nature of its directions, the Court stated:

“The directions issued by this Court are binding and are required to be acted upon without reservation. The expectation of decree, having remained pending for several decades, cannot be rendered fruitless by reason of the unwillingness or recalcitrance of a Judgment Debtor.”

The suit was accordingly disposed of.

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