BBMB Dispute: Centre Proposes Cashless Settlement
The long-running BBMB dispute over Himachal Pradesh’s share in the Bhakra Beas Management Board projects may move closer to a resolution. The Centre has proposed a cashless settlement before the Supreme Court. Under the plan, the partner states would settle the pending arrears through electricity units rather than direct monetary payments.
The dispute concerns Himachal Pradesh’s 7.19 per cent share in the Bhakra Beas projects. The Supreme Court recognised this entitlement in its 2011 decision. However, the arrears linked to the period before November 1, 2011, have remained unsettled.
According to sources, Himachal is entitled to approximately 13,066 million units of electricity for the earlier period. The BBMB has been providing the state with its 7.19 per cent electricity share since November 1, 2011. The pending claim relates to the years before that date.
Centre Suggests Energy-Based Formula
The Centre proposed an energy-based settlement because the states could not agree on an electricity rate. Punjab and Haryana may compensate Himachal through electricity units instead of cash.
Under the proposed formula, more than 12,000 million units could be adjusted against the total arrears of 13,066 million units. This method may help the states avoid a prolonged dispute over the value of the pending electricity.
The proposal also addresses the amount that Himachal owes Punjab and Haryana. Himachal will not have to make a separate payment of around Rs 420 crore towards capital costs. The amount may be adjusted against the pending electricity entitlement.
The Centre told the court that a cashless arrangement could provide a practical solution. It also said that the states had spent considerable time trying to develop an acceptable formula.
Supreme Court Asks Punjab to Clarify Its Position
A Bench led by Chief Justice of India Surya Kant noted that Himachal Pradesh and Haryana had agreed in principle to the Centre’s proposal. Punjab, however, raised objections to the proposed arrangement.
The Supreme Court asked Punjab to clearly explain its position. The Bench also referred to the earlier court decree and said that it must be followed.
Punjab has been given two weeks to submit its response. The matter will be heard again on August 12.
Punjab’s counsel said the state had concerns about the proposed electricity rate. According to Punjab, the suggested rate of Rs 2.50 per unit was too high. The state argued that the proposed rate could result in a financial burden of around Rs 2,000 crore.
The court said it would examine the matter on merit if the states failed to reach an amicable settlement.
Himachal Seeks Rs 4,200 Crore in Pending Dues
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said the state was seeking approximately Rs 4,200 crore in pending dues from the BBMB.
He said the Supreme Court had recognised Himachal’s 7.19 per cent share nearly 15 years ago. Despite the decision, the state had not received the full benefit of its entitlement for the earlier period.
The Himachal Government has continued its legal and administrative efforts to recover the pending amount. State representatives have argued that Himachal deserves the arrears under the terms fixed by the Supreme Court.
Long-Running Dispute Over BBMB Assets
The dispute dates back to the Punjab Reorganisation Act, 1966. Himachal approached the Supreme Court in 1996 and sought its share as a successor state.
In its 2011 decision, the Supreme Court fixed Himachal’s share at 7.19 per cent. Punjab received a share of 51.80 per cent, while Haryana received 37.51 per cent.
The Centre’s proposal has created fresh hope for a settlement. If the partner states accept the formula, the decades-old BBMB dispute may finally move towards a resolution.
