Himachal to earn Rs 3,266 crore after settling 52-year-old electricity arrears with Punjab, Haryana

Shimla, January 5: Himachal Pradesh is all set to settle 52-year-old electricity arrears with Punjab and Haryana in compliance with a Supreme Court order in terms of differential energy return.

 

Notably, the Himachal Pradesh Cabinet chaired by CM Jai Ram Thakur on Thursday approved settling over half a century old electricity arrears with Punjab and Haryana in three Bhakra Beas Management Board (BBMB) projects in compliance with a Supreme Court orders dated 27th September 2011, in terms of differential energy return.

However, the differential energy quantum of 13,066 million units would fetch Rs 3,266 crore to Himachal Pradesh at an average rate of Rs 2.50 per unit. Also, the cabinet approved negotiations with both the neighbouring states for payment of the entire differential energy within 10 to 12 years.

Further, in the cabinet meeting, it also agreed for negotiations towards payment of a liability of Rs 111.53 crore as computed by the Central government in its affidavit in equal annual installments during the period of return of power.

On the other side, if in case Punjab and Haryana insist for repayment with interest then Himachal Pradesh will go in for the return of power with a premium of 6 percent and with no further additional liability for receiving this differential energy of 13,066 million units.

Interestingly, the apex court had raised Himachal's share to 7.19 percent of the power generated by the projects -- Bhakra, Beas (Dehar) and Beas (Pong) against the 2.5 percent which it used to get earlier. The Supreme Court its order on September 27, 2011, had upheld the hills state's claim and directed compensation for denial of the state's legitimate share from November 1, 1966.