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Shanan hydropower project

Source: TH

 Context: Himachal Pradesh and Punjab are facing a potential conflict over the Shanan hydropower project.

What is Shanan hydropower project?

The Shanan hydropower project (on the Uhl River, a tributary of the Beas River ) is a 110 MW power project located in Mandi district, Himachal Pradesh, India. It was commissioned in 1932 and is currently under the control of the Punjab Government.


What is the controversy?

The 99-year lease on the project is set to expire in March 2024, leading to a dispute between Himachal Pradesh and Punjab over its ownership and control. Himachal Pradesh has made it clear that it will not renew or extend the lease and wants the project to be handed over to the state. Punjab, on the other hand, is unwilling to part with the project and is prepared to pursue legal action to retain it.