Supreme Court Orders 11,973 MU Power Supply to Himachal Pradesh

On 6 November 2026, the Supreme Court of India settled a decades-old power dues dispute involving Himachal Pradesh, Punjab and Haryana over projects managed by the Bhakra Beas Management Board. A bench led by Chief Justice Surya Kant accepted the Centre’s cashless settlement proposal and directed Punjab and Haryana to supply Himachal Pradesh 11,973 million units (MU) over 20 years.

Power dues settlement

The arrangement implements Himachal Pradesh’s 7.19% entitlement under a 2011 Supreme Court verdict. The Central Electricity Authority had calculated the original entitlement at 13,066 MU. An adjustment of about ₹420 crore for historical capital costs reduces the net supply to 11,973 MU. Himachal Pradesh will make no separate payment; its assessed capital-cost liability of about ₹420.77 crore is adjusted against the energy arrears.

The supply will average about 598 MU annually, with deliveries particularly during the lean months from October to March. Himachal Pradesh sought settlement within 10 years, while Punjab asked for 30 years; the Court fixed 20 years. The 2011 verdict set shares of 51.80% for Punjab and 37.51% for Haryana, while Rajasthan’s share largely remained unaffected and Chandigarh’s was fixed at 3.50%. It recognised Himachal Pradesh’s share in the Bhakra project from 1 November 1966, the Dehar project from November 1977 and the Pong Dam project from January 1978.

Important Facts for Exams

• Expanded remit: The Bhakra Management Board became the Bhakra Beas Management Board in 1976, extending its management remit to dams on the Beas River.
• Operational portfolio: The board operates Bhakra Dam, Dehar and Pong projects, as well as the Ganguwal and Kotla power stations.
• Successor-state allocation law: Section 78 of the Punjab Reorganisation Act, 1966, addresses successor states’ rights and liabilities in the Bhakra-Nangal and Beas projects.
• Dehar water transfer: The Dehar Power House generates electricity from Beas water diverted at Pandoh, then releases it into the Sutlej through a tailrace.