Supreme Court settles 60-year Bhakra-Beas power dispute between Punjab, Haryana and HP

Supreme Court orders 20-year power transfer to Himachal Pradesh

The Supreme Court has resolved a six-decade dispute between Punjab, Haryana, and Himachal Pradesh over power generated by the Bhakra-Nangal and Beas hydro projects, approving a cashless framework that guarantees Himachal Pradesh 11,973 million units of electricity over the next 20 years.

A three-judge bench led by Chief Justice of India Surya Kant, alongside Justices Joymalya Bagchi and V. Mohana, adopted the resolution chaperoned by Attorney General R. Venkataramani. The verdict delivers long-pending legal finality to northern state relations, setting a firm timeline to settle inter-state dues stemming from the Punjab Reorganisation Act of 1966.

Under the court-approved plan, Punjab and Haryana will supply Himachal Pradesh with 598 million units of power each year during the lean winter months from October to March. The arrangement resolves long-standing claims without requiring liquid cash payments between the state governments.

How the Bhakra-Beas power dues were calculated

The Central Electricity Authority originally evaluated Himachal Pradesh's accumulated power arrears at 13,066 million units, counting from November 1, 1966, for the Bhakra-Nangal project and from the late 1970s for the Beas units.

To account for Himachal Pradesh's share of historical project construction costs, the court adjusted the state's arrears downward by 1,093 million units. This deduction settled a capital liability of ₹420.77 crore up to the 2025–26 financial year, based on audited loan data provided by the Comptroller and Auditor General of India.

Himachal Pradesh will pay standard Bhakra Beas Management Board operational charges for each tranche of electricity it receives over the 20-year disbursement window.

Resolving a 60-year inter-state dispute

Himachal Pradesh first approached the Supreme Court in 1996, seeking its statutory entitlement as a successor state following the reorganization of composite Punjab. In September 2011, the Supreme Court decreed that Himachal Pradesh was entitled to a 7.19 per cent share of the power produced from the Bhakra-Nangal and Beas facilities.

However, computational disagreements prevented implementation for more than a decade. The Centre had proposed a 15-year settlement timeline, while Punjab requested 30 years and Himachal Pradesh sought 10 years. The Supreme Court ultimately fixed a balanced 20-year schedule, granting Punjab and Haryana adequate operational flexibility while ensuring Himachal Pradesh receives its rightful dues.

The bench dismissed objections raised by Punjab regarding past concessional supplies and operation rates, ruling that court decrees must be honored without reservation. By establishing clear supply obligations during peak winter demand, the judgment reinforces institutional coordination and regional energy security across northern India.