BBMB Dispute: Major relief for Himachal; arrears to be received in the form of electricity; SC seeks response from Punjab

August 1, 2026

Significant progress has been made towards resolving the decades-long dispute regarding Himachal Pradesh’s share in the Bhakra Beas Management Board (BBMB) projects. The Central Government has proposed a new “cashless settlement” in the Supreme Court, under which Himachal Pradesh would receive its outstanding electricity dues in the form of power rather than cash.

During the hearing, the Supreme Court bench noted that the governments of Himachal Pradesh and Haryana have agreed to the Centre’s proposal in principle, whereas the Punjab government has raised objections.

Observing this, the Court made strong remarks, stating that Punjab must comply with court orders and clarify its stance within two weeks. The next hearing is scheduled for August 12. According to reports, following a 2011 Supreme Court verdict, Himachal began receiving a 7.19% share of electricity from BBMB projects; however, the arrears for the period between 1966 and 2011 remain unpaid.

These arrears amount to approximately 13,066 million units of electricity. The Central Government has suggested that Punjab and Haryana settle this outstanding amount by supplying electricity instead of making cash payments.

Under the proposal, arrangements could be made to supply over 12,000 million units of the total 13,066 million units to Himachal. A dispute regarding the share in BBMB projects had persisted among the states following the Punjab Reorganisation Act, 1966.

When no resolution was reached, Himachal Pradesh filed an original suit in the Supreme Court in 1996. Subsequently, on September 27, 2011, the Supreme Court delivered a verdict fixing Himachal’s share at 7.19%. According to the judgment, Punjab’s share was set at 51.80%, Haryana’s at 37.51%, and Chandigarh’s at 3.50%, while Rajasthan’s share remained unchanged.