--- title: "Punjab Nears Settlement on BBMB Dues to Himachal, Centre Tells SC" url: https://projectchintan.com/article/punjab-nears-amicable-settlement-bbmb-dues-himachal-ldyl4 publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-08-12T07:30:43.843Z modified: 2026-08-12T10:00:13.588Z language: en-IN --- # Punjab Nears Settlement on BBMB Dues to Himachal, Centre Tells SC The Indian government informed the Supreme Court that Punjab is nearing an agreement on a proposed cashless settlement for dues owed to Himachal Pradesh regarding Bhakra Beas Management Board projects. The dispute concerns electricity share payments since 1966. ## Key takeaways - The Indian Centre has reported significant progress in negotiations with Punjab regarding a BBMB share dispute with Himachal Pradesh. - A cashless settlement, involving energy-term adjustments instead of monetary payments, is nearing agreement. - The dispute concerns electricity dues from BBMB projects dating back to 1966, with a Supreme Court decree having been issued in 2011. - Punjab had previously raised objections regarding the rate of electricity used for calculating arrears. - The Supreme Court has scheduled further hearings to finalize the resolution of this inter-state payment issue. The Indian Centre has indicated to the Supreme Court that the Punjab government is very close to accepting a proposal for settling outstanding dues to Himachal Pradesh. These payments are related to the Bhakra Beas Management Board (BBMB) projects. The proposed settlement is a cashless formula for arrears payment. ## What Happened On Wednesday, the Centre informed the Supreme Court that progress has been made towards an amicable resolution of the BBMB share dispute. Attorney General R Venkataramani stated that Punjab is "coming very closer" to agreeing to the Centre's proposal and requested the court to schedule the matter for further hearing. The Supreme Court has listed the case for August 20 to ascertain Punjab's agreement. The dispute involves payments for electricity shares from BBMB projects. Sources indicate that BBMB currently pays Himachal Pradesh 7.19 per cent of its electricity share from Bhakra Beas projects since November 1, 2011. However, Punjab and Haryana have not paid outstanding dues for the previous period, totaling 13,066 million units. The Centre's proposed cashless formula suggests adjusting the arrears in energy terms rather than monetary payment. Under this plan, Himachal Pradesh would not have to pay ₹ 420 crore to Punjab and Haryana. This amount would be adjusted against the 13,066 million units of electricity arrears. Additionally, Himachal Pradesh would not be required to pay over ₹ 400 crore towards capital cost to Punjab and Haryana. Previously, on July 30, the Centre had proposed a total cashless settlement to avoid complications arising from the Punjab Reorganisation Act, 1966. At that time, Himachal Pradesh and Haryana had agreed in principle to the Centre's proposal, but the Punjab government had objected to the rate of ₹ 2.5 per unit of electricity for arrears, stating it would incur a significant loss. ## Background The dispute dates back decades, following the Punjab Reorganisation Act of 1966. Himachal Pradesh initiated legal proceedings in the Supreme Court in 1996, asserting its entitlement as a successor state to a 7.19 per cent share in BBMB projects. After the central government's efforts to resolve the issue out of court failed, the Supreme Court issued a decree on September 27, 2011. This decree fixed Himachal Pradesh's share at 7.19 percent, while Punjab's was set at 51.80 percent and Haryana's at 37.51 percent. The share for Rajasthan remained largely unchanged, and Chandigarh's share was fixed at 3.50 percent. ## Key Facts - The Centre informed the Supreme Court on Wednesday that the Punjab government is nearing an agreement on a proposal for settling dues related to Bhakra Beas Management Board (BBMB) projects. - The dispute concerns the payment of electricity shares and arrears from BBMB projects since 1966. - The proposed settlement involves a cashless formula, adjusting arrears in energy terms rather than monetary payment. - Under the proposal, Himachal Pradesh would not pay ₹ 420 crore to Punjab and Haryana, and this amount would be adjusted against 13,066 million units of electricity arrears. - A Supreme Court decree from September 27, 2011, established Himachal Pradesh's share at 7.19 percent, Punjab's at 51.80 percent, and Haryana's at 37.51 percent in BBMB projects. --- Canonical: https://projectchintan.com/article/punjab-nears-amicable-settlement-bbmb-dues-himachal-ldyl4 Reported from: Multiple Sources