Shanan project

GS-III | Indian Economy


·    As the tussle between Punjab and Himachal Pradesh continues over the 99-year-old lease of the British-era 110 Mega Watt (MW) Shanan Hydropower Project situated in Himachal Pradesh’s Jogindernagar, the Himachal Pradesh Government has yet again made it clear that it will not relent.

·       The project is presently under the control of the Punjab Government, and its lease will expire in March 2024. The Himachal Pradesh Government has announced not to renew or extend the lease period, and wants the project to be handed over to the State before the expiry of the lease period. Meanwhile, the Punjab Government is in no mood to do so, asserting its readiness to take legal recourse, if needed to retain the project.

·    Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said he had urged Union Power Minister R.K. Singh, who was on a visit to the State, to complete the process for the time-bound transfer of Shanan Hydroelectric Project to Himachal Pradesh, among other issues.

·     Mr. Sukhu had earlier written a letter to Punjab Chief Minister Bhagwant Mann stating that the 99-year-old lease of the project given to Punjab by the then ruler of Mandi, Raja Joginder Singh Bahadur, would end on March 2, 2024. The 110 MW Shanan power project was envisaged by Col. Battye, the then Chief Engineer of government of Punjab in the year 1922.

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