Why is it in the news?

• The Union Government ordered the maintenance of status quo on the Shanan hydropower project amidst competing claims from Punjab and Himachal Pradesh.

 More about the news

• The Shanan Hydropower Project is a 110-MW hydel project located in Jogindernagar, Mandi district of Himachal Pradesh, established during the British era.
• It was leased to Punjab in 1925 under a 99-year lease agreement signed between Raja Joginder Bahadur of Mandi and a British representative and Chief Engineer of Punjab.
• The 99-year lease agreement concluded on March 2, 2024 prompting discussions on the project’s ownership.
• Punjab historically held the lease for the project, while Himachal Pradesh argues for its control post-lease, citing jurisdictional reasons.
• However, Union government ordered a maintenance of status quo on the project amid Punjab and Himachal Pradesh’s competing claims. It intended to facilitate discussions and resolution on the ownership issue.