IAS Gyan

Daily News Analysis


5th June, 2023 Economy

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Context: The 99-year lease on the British-era 110 MW Shanan hydropower facility located near Jogindernagar in the Mandi district of Himachal Pradesh, which is currently under the jurisdiction of the Punjab Government, will end in March 2024.


  • The matter might escalate into a big dispute between the two neighbouring states, as the Himachal Pradesh government has stated that it will not renew or extend the lease.
  • Himachal Pradesh wants the project turned over to the state after the lease time expires. The Punjab Government, on the other hand, is unwilling to give up its cherished project and is willing to go to court to save it.

Shanan Hydropower Project

  • The Shanan hydropower project in the Mandi district of Himachal Pradesh is one of the oldest and most important hydroelectric projects in India. It was built by the British in 1925.
  • The project harnesses the power of the Uhl River, a tributary of the Beas River, and generates 110 MW of electricity.
  • The project consists of a dam, a powerhouse, a reservoir and a network of canals and tunnels. The project is also a source of irrigation and drinking water for the surrounding areas.
  • The project was leased to the Punjab Government for 99 years by Raja Joginder Singh Bahadur, the then-ruler of Mandi state.
  • The lease agreement will expire in March 2024, and both Himachal Pradesh and Punjab are claiming their rights over the project.
  • Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has written to the Punjab Chief Minister and the Union Power Minister, stating that his government will not renew or extend the lease and wants the project to be handed over to the state.
    • Punjab, however, is reluctant to give up the project and may seek legal recourse to retain it.


Q. “Shanan hydropower project” is frequently seen in the news. The Project is the reason for the dispute between ___and ______.

A) Haryana and Rajasthan

B) Uttar Pradesh and Madhya Pradesh

C) Punjab and Himachal Pradesh

D) Himachal Pradesh and Uttarakhand

Answer: C