Archive · 13 Aug 2026
Centre tells Supreme Court Punjab close to BBMB dues settlement
This is a story about three states in India — Punjab, Himachal Pradesh and Haryana — that have been fighting over electricity and money for a very long time.
A special board called the Bhakra Beas Management Board runs dams and power projects that make electricity for these states.
Himachal Pradesh says Punjab and Haryana owe it a huge amount of electricity.
To solve this, the central government of India made a plan where the states would pay the debt in electricity instead of cash.
Two of the states agreed to the plan, but Punjab did not at first.
The Supreme Court, which is the highest court in India, asked everyone to find an agreement.
On the latest hearing day, the government's top lawyer said Punjab is now very close to saying yes.
Everyone expects the differences to be resolved soon.
The court will meet again on August 20 to hear the final answer.
The Centre told the Supreme Court that Punjab is 'very close' to agreeing to its proposal on payment of dues to Himachal Pradesh from Bhakra Beas Management Board (BBMB) projects since 1966.
Himachal Pradesh and Haryana have in principle agreed to the Centre's cashless settlement formula, while Punjab had objected to it.
Attorney General R Venkataramani said the states now 'speak in a joint voice' and are close to ironing out the differences.
The Supreme Court bench, headed by Chief Justice Surya Kant, posted the next hearing for August 20.
Under the proposal, Punjab and Haryana would pay outstanding dues of 13,066 million units in energy terms, with Himachal's Rs 420 crore dues adjusted against them.
- Who
- The Supreme Court bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana, the Centre represented by Attorney General R Venkataramani, Himachal Pradesh represented by senior advocate Kapil Sibal, and the governments of Punjab and Haryana.
- What
- The court was told that Punjab is very close to agreeing to the Centre's proposal for settling the BBMB electricity dues owed to Himachal Pradesh.
- When
- The hearing took place on Wednesday, and the next hearing was posted for August 20.
- Where
- The Supreme Court in New Delhi.
- Why
- To settle long-pending dues of 13,066 million units that Punjab and Haryana owe Himachal Pradesh from BBMB projects since 1966.
Punjab's position
Centre, Himachal Pradesh and Haryana position
Cashless settlement proposal
Punjab's position
Punjab objected to the Centre's proposed formula for payment of arrears to Himachal Pradesh.
Centre, Himachal Pradesh and Haryana position
Himachal Pradesh and Haryana agreed in principle to the Centre's cashless proposal, which the Centre believes can yield an amicable settlement.
Compliance with the Supreme Court
Punjab's position
Punjab initially declined to agree to the proposal, leading to criticism from the apex court.
Centre, Himachal Pradesh and Haryana position
The Supreme Court pulled up Punjab, observing it has a habit of not following court decrees; the Centre now says Punjab is very close to agreeing and the states speak in a joint voice.
- Dispute origin
- Dues arising from BBMB projects since 1966
- Outstanding dues
- 13,066 million units of electricity owed by Punjab and Haryana
- Himachal Pradesh's electricity share
- 7.19 per cent paid by BBMB after November 1, 2011
- Himachal Pradesh's dues
- Rs 420 crore to Punjab and Haryana, to be adjusted from the 13,066 million units
- Proposed settlement
- Cashless payout in energy terms, as no consensus was reached on the electricity rate
- Proposal announced
- July 30, when the Centre told the apex court an amicable settlement was possible
- Bench
- Chief Justice Surya Kant, Justices Joymalya Bagchi and V Mohana
- Next hearing
- August 20