Himachal CM claims 7.19% Chandigarh share, raises BBMB and Shanan Project dues with Punjab Governor
Synopsis
Himachal Pradesh's Chief Minister has put three long-frozen inter-state disputes on the table in a single meeting with Punjab's Governor — a 7.19% share in Chandigarh backed by the Punjab Reorganisation Act, over a decade of unpaid BBMB power dues worth 13,066 million units, and the Shanan Hydroelectric Project whose 99-year lease expired in March 2024. The convergence of these claims in one sitting suggests Shimla is moving from quiet diplomacy to assertive federalism.
Key Takeaways
Himachal Pradesh CM Sukhvinder Sukhu met Punjab Governor Gulab Chand Kataria in Chandigarh on 26 June to press multiple inter-state claims.
Himachal asserts a 7.19 per cent share in the Union Territory of Chandigarh under the Punjab Reorganisation Act, 1966 .
The state is awaiting 13,066 million units of power and associated financial dues from the Bhakra Beas Management Board (BBMB) for over a decade.
The 99-year lease on the Shanan Hydroelectric Project in Mandi district expired on 2 March 2024 ; Himachal argues all rights under the lease stand extinguished.
A 4.736-acre site in Sector 52, Chandigarh has been identified for a new Himachal Sadan to replace the ageing Himachal Bhawan.
Himachal Pradesh Chief Minister Sukhvinder Sukhu on Friday, 26 June called on Punjab Governor Gulab Chand Kataria in Chandigarh and pressed a set of long-pending inter-state claims, including the state's asserted 7.19 per cent share in the Union Territory of Chandigarh, overdue dues from the Bhakra Beas Management Board (BBMB), and the reversion of the Shanan Hydroelectric Project to Himachal Pradesh following the expiry of its 99-year lease.
The Chandigarh Share Claim
Chief Minister Sukhu reiterated that Himachal Pradesh, as a successor state to the erstwhile undivided Punjab under the Punjab Reorganisation Act, 1966, is entitled to a 7.19 per cent share in Chandigarh, calculated on the basis of the population ratio of areas transferred to the state. He argued that Chandigarh was built from the consolidated resources of undivided Punjab, and that while Punjab and Haryana have drawn on the city's land, assets, and administrative infrastructure for over five decades, Himachal Pradesh has yet to receive any corresponding benefit.
Sukhu urged the Governor to support an expeditious resolution, framing the demand within the broader principle of cooperative federalism.
Himachal Sadan Expansion in Chandigarh
The Chief Minister also flagged the inadequacy of the existing Himachal Bhawan in Chandigarh, which he said was constructed decades ago and can no longer accommodate the volume of students, patients, and other visitors from the state. He noted that thousands of Himachal residents visit Chandigarh every month, with a significant number seeking treatment at the Postgraduate Institute of Medical Education and Research (PGI).
Sukhu said that following consultations with the Chandigarh administration, a site measuring 4.736 acres in Sector 52 has been identified for a proposed new Himachal Sadan, and sought the Governor's intervention to facilitate the allotment.
BBMB Dues: Over a Decade Pending
On the Bhakra Beas Management Board, Sukhu stated that the Supreme Court has recognised Himachal Pradesh's entitlement to a 7.19 per cent share in BBMB projects and associated benefits. He said the state has been awaiting the realisation of its entitlement to 13,066 million units of power and the related financial dues for more than a decade, and called on the Governor to facilitate their early settlement.
Shanan Hydroelectric Project: Lease Expired, Rights Extinguished
The Shanan Hydroelectric Project dispute formed a significant part of the discussions. Sukhu argued that the project is situated in Mandi district of Himachal Pradesh — a region that was never part of the composite state of Punjab. He noted that the erstwhile Mandi state acceded to and merged with the Union of India in 1948, after which Himachal Pradesh was constituted as a Part 'C' State in 1951 and later declared a Union Territory effective 1 November 1956.
He contended that since Mandi was never included within the 'transferred territories' as defined under Section 2(n) of the Punjab Reorganisation Act, 1966, the provisions of that Act have no applicability to the area where the project stands, and no rights over the project can be derived from it. The 99-year lease on the Shanan project expired on 2 March 2024, Sukhu said, adding that with the lease's expiry, all rights flowing from it stand extinguished, and any claim to continued operation or possession on the basis of the expired lease is, in his words, legally unsustainable.
Outlook
The Chief Minister expressed confidence that the pending matters could be resolved through constructive dialogue and mutual respect. The meeting signals a renewed push by the Himachal government to convert long-standing inter-state grievances into actionable outcomes — though several of these disputes, including the Shanan project, remain contested and are likely to require judicial or central arbitration before any final settlement.
Point of View
One meeting — Sukhu's visit to the Punjab Governor reads less like routine protocol and more like a deliberate escalation of Himachal's federal claims. The 7.19% Chandigarh share has been dormant for decades; the BBMB dues have a Supreme Court order behind them yet remain unsettled; and the Shanan project's expired lease is the most time-sensitive flashpoint, with Punjab unlikely to vacate without a legal fight. What is missing from the Chief Minister's framing is any acknowledgement of the political complexity: the Governor's office has limited executive authority over these disputes, and the real arena — whether the Supreme Court or the Union Cabinet — remains unaddressed. Assertive rhetoric is a start, but without a clear legal or political pathway, these claims risk cycling back into the same decade-long limbo.
NationPress
26 Jun 2026
Frequently Asked Questions
What is Himachal Pradesh's claim over Chandigarh?
Himachal Pradesh claims a 7.19 per cent share in the Union Territory of Chandigarh, arguing it is a successor state to undivided Punjab under the Punjab Reorganisation Act, 1966, and is entitled to a share based on the population ratio of areas transferred to it. Chief Minister Sukhu contends that Punjab and Haryana have benefited from Chandigarh's assets for over five decades while Himachal has received nothing.
What is the Shanan Hydroelectric Project dispute?
The Shanan Hydroelectric Project is located in Mandi district of Himachal Pradesh. The state argues that Mandi was never part of the composite Punjab and therefore falls outside the Punjab Reorganisation Act, 1966. The 99-year lease on the project expired on 2 March 2024, and Himachal Pradesh contends that all rights under the lease have lapsed, making any continued claim by Punjab legally untenable.
What are the pending BBMB dues owed to Himachal Pradesh?
Himachal Pradesh is awaiting its entitlement to 13,066 million units of power and associated financial dues from the Bhakra Beas Management Board (BBMB), which the Supreme Court has recognised as part of the state's 7.19 per cent share. These dues have remained unsettled for over a decade.
Why does Himachal Pradesh need a new Himachal Sadan in Chandigarh?
The existing Himachal Bhawan in Chandigarh was built decades ago and is no longer adequate for the growing number of students, patients, and visitors from the state. Chandigarh serves as a key hub for higher education, healthcare, and administrative services for Himachal residents, with thousands visiting each month, including patients at PGI. A 4.736-acre site in Sector 52 has been identified for the proposed new facility.
What outcome is Himachal Pradesh seeking from the Punjab Governor?
Chief Minister Sukhu sought the Governor's support for expeditious resolution of all three issues — the Chandigarh share, the BBMB dues, and the Shanan project reversion — framing them as matters of legitimate inter-state entitlement. He expressed confidence that constructive dialogue and cooperative federalism could resolve the disputes.
