Mandi: A Century Without Benefits from Shanan Power Project—Locals Voice Frustration as State Seeks Control

Mandi, May 13:
As the 99-year lease of the Shanan Power Project comes to an end, the Himachal Pradesh government is now making efforts to reclaim the project from the Punjab government. While the issue remains primarily a matter between the two state governments, the voices of those who live where the project is located are equally important and revealing.

The dam of the Shanan Power Project is situated on the Uhl River in Barot, a remote area of Mandi district. From here, water is transported through pipelines to Jogindernagar, where electricity is generated.

However, residents of Barot say they have never benefited from the project—instead, they’ve only faced hardships. Ramesh Kumar, the head of the Barot Gram Panchayat, expressed frustration that a large portion of land in the region falls under the jurisdiction of the Punjab government due to the project, resulting in stalled local development. “Punjab has shown no interest in supporting developmental work here. On the contrary, the local population faces restrictions and bureaucratic hurdles because of this setup,” he said. He urged the Himachal Pradesh government to take back control of the project without delay so that development can proceed in line with local needs.

Local residents Sher Singh, Rajeev, and Anil Sood echoed similar concerns. They pointed out that the project has brought neither employment opportunities nor significant infrastructure improvements to the region. “Punjab has extensively used our local resources for power generation, yet the people here have been left out of the benefits. Even private land near the project site is subject to building restrictions,” they noted. The trio called on the state government to expedite the transfer process and ensure that locals finally receive their fair share of the project’s benefits.

To provide context, the Shanan Power Project was established in 1925. Following the reorganization of Punjab, the project was handed over to the Punjab government under a 99-year lease. That lease expired last year. With the agreement now lapsed, the project is legally expected to return to the Himachal Pradesh government, but ongoing disagreements between the two states have led to a stalemate.

Local sentiment is clear: after nearly a century of exclusion and inconvenience, the people of Barot are demanding both change and long-overdue recognition.