Shanan project

• An inter-state dispute is imminent between HP and Punjab Government regarding Punjab Government’s Shanan project in Mandi.
• HP govt. says that the 99-year-old lease of the project and its assets given to Punjab by the then ruler of Mandi, Raja Joginder Singh Bahadur, was to come to an end on March 2, 2024.
• Punjab government on the other hand says that hydro project was given to Punjab as per Section 48, sub-clause 1 of the Punjab Reorganisation Act.
• The ending of 99-year-old lease that HP Government is referring to, becomes null and void after Independence.
• The lease was made in the year 1935 before India became an independent nation. This is an already settled issue with the Government of India admitting on two occasions that the project belongs to Punjab.

ABOUT THE PROJECT

• The Shanan project (Uhl river hydroelectric project) is believed to be worth Rs 1,600 crore and it generates 110 MW of power.
• When it was built in 1932, it had an installed capacity of 48 MW.
• This was enhanced by the Punjab Government in 1982.