In a letter to the prime minister, he said the grant of this compensation amount has already been directed by the Supreme Court in its verdict on the issue.
"It is understood that an High Powered Committee headed by Joint Secretary (Hydro Power) has conveyed to the Himachal Government that the amount of Rs 4,250 crore due as compensation to Himachal has been reduced to Rs 3,400 crore," Singh said in his letter, adding that the state has declined to accept the reduced amount.
"This unilateral cut by the Centre without taking Himachal into confidence runs counter to the judgement of the Hon'ble Supreme Court and is not acceptable to the state," he said.
He demanded that the SC judgement needs to be implemented without any riders.
Singh said the state had moved the Supreme Court in 1996 about it being denied its power share in the allocation from BBMB projects.
The state had pleaded that Himachal Pradesh should get 7.19 per cent share in the projects on the basis of transferred population under re-organisation of the Punjab state in 1966.
The Supreme Court on September 27 had granted relief to Himachal Pradesh by allowing 7.19 per cent share in the power of all the hydro power projects executed by BBMB from the date of commissioning of the projects to Himachal Pradesh.
Virbhadra Singh said the court has directed the Centre to work out details of the compensation to be paid to Himachal, in return of short supply all these years, in accordance with the provisions of the Punjab Re-organisation Act, 1966.
The SC had also directed the Centre to grant Himachal's entitlements and liabilities within six months.
He claimed that 1.5 lakh Himachalis were uprooted and the state had to pay a heavy price in terms of human suffering while the fruits of prosperity are being enjoyed by the neighbouring states. He said many uprooted oustees are still awaiting rehabilitation.