The British-era 110 Megawatt Shanan hydropower project situated in Joginder Nagar, 40 km from Palampur in Himachal Pradesh (HP), is at the center of a storm between Panjab and HP. The project was built in 1925 by Colonel BC Batty who laid a small gauge rail line between Pathankot and Joginder Nagar to transport heavy machinery to the Shanan project. He constructed a haulage rail network starting from Joginder Nagar to Barot and a ropeway trolley, one of its only types in India. One of the oldest power houses of the country, Shanan used to feed the entire undivided Panjab, Lahore and Delhi before independence. At that time, Raja Joginder Singh Bahadur, the then ruler of Mandi, had given the project to Panjab on a 99-year lease. Also, through the Punjab Reorganisation Act, 1966 the project was awarded to Panjab. HP CM Sukhwinder Singh Sukhu has written to Panjab CM Bhagwant Singh Mann saying HP intends to take over the project and will not renew or extend the lease. The Panjab govt. has asserted its right on the project and moved to the Supreme Court of India (SCI) staking its claim on the Shanan power house even after the expiry of the lease. During a meeting with Union Power Minister Manohar Lal in Shimla, Sukhu also urged the Union govt. to direct the Bhakra Beas Management Board to release 13,066M units of outstanding power arrears owed to HP for the period from November 1996 to October 2011, noting that despite a SCI ruling in favor of the state, it has yet to receive its rightful share. He emphasized that while private companies comply with this policy, Public Sector Undertakings should also adhere to it.
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