Supreme Court approves 20-year power dues settlement

The Supreme Court on November 6, 2026, accepted a cashless settlement under which Punjab and Haryana will transfer 11,973 million units of electricity to Himachal Pradesh over 20 years to clear historical dues from Bhakra Nangal and Beas hydroelectric projects. The arrears date back to 1966, and the arrangement implements Himachal Pradesh’s power entitlement recognized in a 2011 judgment. A three-judge bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana accepted a proposal from the Central government to settle the dues through electricity rather than cash. The court set a 20-year period after the states put forward different timelines: Punjab sought 30 years after initially opposing a 15-year proposal, while Himachal Pradesh sought settlement within 10 years. The Central Electricity Authority had calculated the original entitlement at 13,066 million units. The settlement reduces the transfer by 1,093 million units after accounting for historical capital costs associated with constructing the dams. Himachal Pradesh will not have to make a separate payment to Punjab or Haryana under the arrangement. The 2011 judgment recognized Himachal Pradesh’s...