More than five decades after the reorganisation of Punjab reshaped the political map of northern India, Himachal Pradesh has once again pushed some of its oldest and most contentious claims back into the spotlight. Chief Minister Sukhvinder Singh Sukhu on Friday renewed the state’s demand for a 7.19 per cent share in Chandigarh and sought the return of the historic Shanan hydel project, arguing that Himachal’s rightful interests have remained unaddressed for decades.
During a meeting with Punjab Governor and Chandigarh Administrator Gulab Chand Kataria in Chandigarh, Sukhu raised a series of issues that continue to define the complex relationship between Himachal Pradesh and its neighbouring states. The discussions revolved around Chandigarh’s ownership structure, pending dues linked to the Bhakra Beas Management Board (BBMB), the future of the Shanan power project and infrastructure needs for Himachal residents visiting the Union Territory.
At the heart of Himachal’s argument lies the Punjab Reorganisation Act of 1966, the legislation that led to the creation of Haryana and significantly altered administrative boundaries in northern India. Sukhu asserted that Himachal Pradesh, as a successor state to the erstwhile Punjab, is entitled to a 7.19 per cent stake in Chandigarh based on the population ratio of the territories that became part of Himachal after reorganisation.
The Chief Minister argued that Chandigarh was built using the collective resources of undivided Punjab and that both Punjab and Haryana have enjoyed the benefits of the city’s assets, institutions and governance framework for more than half a century, while Himachal Pradesh has remained on the sidelines despite being legally entitled to a share.
“Himachal Pradesh is a successor state to the erstwhile Punjab and is entitled to its legitimate share of 7.19 per cent based on the population ratio of the areas transferred to the state,” Sukhu said, adding that the issue requires a fair and equitable resolution.
The demand revives a politically sensitive issue that has remained dormant for years amid the larger Punjab-Haryana dispute over Chandigarh’s status. While the city continues to function as the joint capital of Punjab and Haryana as well as a Union Territory administered by the Centre, Himachal’s claim introduces another dimension to a debate that has never been fully settled.
Sukhu also sought intervention on another long-pending issue involving the Bhakra Beas Management Board, which oversees some of northern India’s most important hydroelectric and irrigation infrastructure. According to the Chief Minister, despite the Supreme Court recognising Himachal Pradesh’s entitlement to a 7.19 per cent share in BBMB projects, the state is yet to receive benefits corresponding to 13,066 million units of power along with financial dues that have accumulated over more than a decade.
The issue carries significant financial implications for Himachal Pradesh, a state that depends heavily on hydropower revenues for its economy. Successive governments in Shimla have argued that delayed settlements have deprived the hill state of resources that could have been invested in public infrastructure, healthcare and social welfare programmes.
Perhaps the most emotionally and politically charged issue raised by Sukhu was the future of the Shanan hydel project in Mandi district. The century-old power project, one of the earliest hydroelectric ventures in the country, was leased to Punjab for 99 years, with the agreement expiring on March 2, 2024.
The Himachal government has maintained that the expiry of the lease automatically extinguishes Punjab’s rights over the project and that operational control should revert to Himachal Pradesh. Sukhu reiterated this position during his meeting with Kataria and argued that the legal and historical foundations of Punjab’s claim no longer exist.
“Mandi district was never a part of the composite State of Punjab,” the Chief Minister said while outlining the historical evolution of the region. He noted that Mandi acceded to the Union of India in 1948 before becoming part of Himachal Pradesh and was never included among the territories transferred under the Punjab Reorganisation Act.
According to the Himachal government’s interpretation, since the project is located in territory that was never part of the transferred areas under the Act, Punjab cannot derive any continuing rights over the project through that legislation. Sukhu maintained that any attempt to continue operating or controlling the facility after the lease expiry lacks legal validity.
The Shanan issue has emerged as one of the most significant inter-state disputes in recent years, carrying implications not only for energy generation but also for the ownership of strategic hydroelectric assets in the Himalayan region. The outcome could influence future negotiations involving hydro projects and resource-sharing arrangements between neighbouring states.
Beyond historical disputes and legal claims, Sukhu also highlighted practical concerns affecting thousands of Himachal residents who travel regularly to Chandigarh for education, medical treatment and administrative work. He sought support for establishing an additional Himachal Sadan in the city, arguing that the existing Himachal Bhawan can no longer meet growing demand.
According to the Chief Minister, Chandigarh remains the preferred destination for higher education, specialised healthcare and government-related work for residents across Himachal Pradesh. As a result, accommodation facilities available to visitors from the state have come under increasing pressure over the years.
Sukhu informed the Governor that a suitable site measuring 4.736 acres in Sector 52 has already been identified after consultations with the Chandigarh Administration for the proposed facility.
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Read MoreThe meeting reflected Himachal Pradesh’s broader effort to revisit unresolved issues inherited from the region’s political reorganisation and to secure what the state considers its rightful share of assets, revenues and institutional support. Whether these decades-old demands gain fresh momentum now may depend on the willingness of the Centre, Punjab and other stakeholders to engage in negotiations that successive governments have struggled to conclude.