With reference to the inter-state energy settlement between Punjab, Haryana, and Himachal Pradesh, consider the following statements: 1. The settlement includes a ₹420 crore adjustment for historical capital costs. 2. A 2011 verdict fixed Himachal Pradesh's electricity share at 10%. 3. Punjab and Haryana are to pay Himachal Pradesh 11,973 million units of electricity over a 20-year period. Which of the statements given above is/are correct?

The Supreme Court accepted the Centre's proposal on Friday to settle energy dues between

GS2Polity · Governance · IR· Federalism & Centre-State relations· Prelims + Mains· 6 November 2026

Inter-state resource disputes and cooperative federalism: a relevant GS2 and GS3 case study.

Why in news

The Supreme Court accepted the Centre's proposal to settle long-standing electricity dues between Punjab, Haryana, and Himachal Pradesh to resolve inter-state power disputes.

Background

The Supreme Court ruled that Punjab and Haryana will pay Himachal Pradesh 11,973 million units of electricity over a 20-year period. The settlement includes a ₹420 crore adjustment for historical capital costs, following a 2011 verdict that fixed Himachal Pradesh's share at 7.19%.

Facts for Prelims

FactPunjab and Haryana to pay Himachal Pradesh 11,973 million units of electricity over 20 years
FactSettlement includes a ₹420 crore adjustment for historical capital costs
FactA 2011 verdict fixed Himachal Pradesh's electricity share at 7.19%

Prelims practice question

With reference to the inter-state energy settlement between Punjab, Haryana, and Himachal Pradesh, consider the following statements:

The settlement includes a ₹420 crore adjustment for historical capital costs.
A 2011 verdict fixed Himachal Pradesh's electricity share at 10%.
Punjab and Haryana are to pay Himachal Pradesh 11,973 million units of electricity over a 20-year period.

Which of the statements given above is/are correct?

(a)1 only
(b)3 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The 2011 verdict fixed Himachal Pradesh's share at 7.19%.

For Mains

Q. Discuss the role of the judiciary in mediating inter-state resource disputes and the importance of cooperative federalism in resolving energy-related conflicts.

Dimensions to cover in your answer

Fiscal federalism: Balancing historical capital cost adjustments with current power demand requirements
Inter-state coordination: Resolving long-standing electricity arrears through judicial mediation and central intervention

Keywords: Cooperative Federalism · Inter-state disputes · Judicial intervention · Energy security · Fiscal adjustment

Read the full news →Report a mistake in this note How notes are made Source: The Hindu ↗Also: GS3 · Infrastructure (energy, ports, roads, railways)

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