Punjab Objects to AG's Proposal for Bhakra Nangal, Beas Power Dues Settlement

NEW DELHI: Punjab govt's stiff resistance to attorney general R Venkataramani's proposal for amicable implementation of a 15-year-old Supreme Court decree settling Bhakra Nangal and Beas power dues since 1966 in favour of Himachal Pradesh made SC observe, "The state has a habit of defying decrees and old habits die hard. " Venkataramani told a bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana that he had extensive consultations with Punjab, Haryana, Himachal and Union ministry of power after getting the records examined by CAG for independent determination of the historical capital cost liability. "...a mutually workable settlement framework has been evolved. It envisages a cashless settlement, wherein the respective claims and liabilities are proposed to be adjusted through in-kind settlement of energy arrears and set-off of capital cost liability, thereby obviating the need for any direct financial transaction between the states," the AG said. Senior advocates Kapil Sibal and Balbir Singh, appearing for Himachal and Haryana, respectively, said they were agreeable with the AG's settlement proposal for implementation of the decree, which was passed by the SC in 2011 on an original suit filed by Himachal 30 years ago seeking settlement of assets on division of Punjab in 1966. For Punjab, senior advocate Nidhesh Gupta said the state had key concerns over workability of the AG's proposal and said the state would stand to lose substantially. Given the fact that it is a 15-year-old decree passed on a 30-year-old original suit seeking resolution of a 60-year-old inter-state dispute, the bench said, "Your state has a habit of defying decrees..." "There is a decree in Himachal's favour. When we order implement, it will be with interest from 2011. We will not allow them to be deprived of the fruits of the decree. If you settle, it is well and good. Otherwise, be ready for consequences." It posted the matter for hearing on Aug 12. In its July 30 order, the bench said, "While the states of Himachal and Haryana have graciously agreed in principle to the proposal, the state of Punjab has raised objections thereto. In the interest of justice, two weeks time is granted to Punjab to reconsider and clarify its stand." The AG's proposal had said, "Punjab and Haryana will provide 13,066 MU of energy arrears to HP at 871 MU per annum over 15 lean seasons (Oct-March), in the inter-se ratio of 58:42 (Bhakra Nangal project) and 60:40 (Beas projects). HP to pay BBMB-determined charges for the year in which each tranche is received. "HP's liability (7.19% of composite Punjab) towards the capital cost of Bhakra Nangal and Beas projects - being the unreimbursed share of loan servicing by Punjab and Haryana since 1966-67 - be assessed at Rs 420.7 crore (Punjab: Rs 249.2 crore; Haryana: Rs 171.5 crore). The capital cost liability could be considered to set off against part of HP's energy arrear receivables. At the rate of Rs 3.85 per unit, the units to be offset is approximately 1093 MUs. " SC on Sept 27, 2011 (Justices R V Raveendran and A K Patnaik) had decreed the suit in favour of HP by ruling, "The state is entitled to 7.19% of the power of the composite state of Punjab from the Bhakra Nangal project with effect from Nov 1, 1966, and from Beas project with effect from the dates of production in Unit I and Unit II."