Baira Siul Hydro Power Project: HC stays take over, issues notice on NHPC plea

Himachal Pradesh high court, as an interim relief to National Hydroelectric Power Corporation (NHPC), has stayed the move of the state government to take over 180 MW Baira Siul Hydro Power Project.

Justice Ajay Mohan Goel directed the state government to maintain status quo qua the Baira Siul Hydro Power Project while issuing notice to the state government and Government of India through Secretary, Ministry of Power on April 25.

180 MW Baira Siul Hydro Power Project is operated by the National Hydroelectric Power Corporation (NHPC), which had moved the high court challenging the state government’s move to reclaim the project.

The high court has also stayed the communication dated March 26, as well as the decision of the Council of Ministers qua the project till further orders. The case is now deferred to May 26.

Commissioned in 1980-81, the Baira Siul project was originally set to be handed back to the state government after 40 years of operation, as per the terms of the initial agreement. Following the completion of this period, the state-initiated steps to regain control of the project. NHPC, however, has opposed the move, asserting a claim of perpetual ownership on the grounds of having modernised the plant in August 2021.

Cabinet had approved taking over different hydro-electric projects

In a recent cabinet meeting, the state government decided to bring several major hydro-electric projects under its control, including the 382 MW Sunni, 210 MW Luhri Stage-1, and 66 MW Dhaulasidh projects, previously allocated to SJVN, as well as the 500 MW Duggar and 180 MW Baira Siul projects allocated to NHPC.

Prior to this, during the budget session, chief minister (CM) Sukhvinder Singh Sukhu had reiterated that the state government will take back those hydel projects which do not accept the government’s conditions. Sukhu in his reply to a question said in the house that he has made it clear to NHPC and Union power minister Manohar Lal Khattar that if NHPC does not accept the condition of 12%, 18% and 30% royalty and returning the project to the state government after 40 years, all the projects allotted to it will be taken back.

HP-Punjab entangled in legal battle for Shanan project

Already, a legal dispute is going on between Himachal Pradesh and Punjab over ownership of the 110 MW Shanan power project in Joginder Nagar, Himachal Pradesh. Union power minister Manohar Lal Khattar, during his visit to Shimla in November last year, had clarified that Centre will “not favour any state”.

Himachal chief minister (CM) Sukhvinder Singh Sukhu had requested for Centre’s assistance to ask Punjab to hand over the 110 MW Shanan Project to Himachal Pradesh as the 100-year lease with Punjab recently expired.

The dispute between the neighbouring states is related to the British-era Shanan Hydropower Project at Jogindernagar of Mandi district in Himachal Pradesh. It was constructed in 1925 under the lease agreement executed between Raja Joginder Sen, the ruler of the then Mandi state, and Col BC Batty, who represented the British government and served as the chief engineer of the undivided Punjab.

The project at present is being operated by the Punjab government and the Himachal government has been asking its neighbour to hand over the project to Himachal Pradesh.

The Himachal government has been maintaining that the area of Shanan Project was never part of the erstwhile Punjab; therefore, the Punjab Reorganisation Act of 1966 does not apply.