SCI Settles 60-Year-Old Dispute, Awards HP 598 MU Per Year

November

2026

In its 6 Nov judgment in State of Himachal Pradesh (HP) v. Union of India, the Supreme Court of India directed that Panjab and Haryana pay HP 11,973 MU of electricity. This works out to approximately 598 MU a year, to be supplied each year between October 2026–March 2027. The ruling settles a long-running dispute since 1966, when Panjab was reorganized and HP’s share of power from Bhakra Beas Management Board (BBMB) projects, including the Bhakra-Nangal and Beas projects came into contention. HP invoked Article 131 of the Indian Constitution, which gives the SCI the right to adjudicate disputes between states or between the state and the government of India. HP contended that upon reorganization, it became entitled to a defined share in the power generated from the projects. Panjab and Haryana disputed the basis and the extent of such entitlement. The SCI arrived at the figure after accounting for HP’s outstanding capital-cost liability. It recognized historical energy arrears of 13,066 MU but also determined that HP owed USD 45M towards the capital cost attributable to Panjab and Haryana. The court directed that this amount should be adjusted against the state’s electricity entitlement at US Cents 4.1 (Rs 3.85) per unit, reducing the energy due by approximately 1,093 MU. The most immediate financial benefit is likely to come from reducing the amount of electricity HP has to purchase in winter. HP’s power demand rises in the lean months, when river flows decline, hydropower generation falls, and the state has to arrange electricity from outside sources to meet consumer needs. The Himachal Pradesh Electricity Regulatory Commission estimated a winter power deficit of 2,076 MU between October 2024–March 2025. The additional 598 MU a year from BBMB would be equivalent to about 29% of that estimated deficit. It will not eliminate the state’s winter shortage, but it could reduce the volume of power Himachal Pradesh State Electricity Board Ltd needs to procure from the market. The award could save HP around USD 32M annually. The state government’s estimate of the benefit has been higher—around USD 60–80M, depending on the rate at which the power is valued (earlier coverage).