Himachal Urges Centre To Increase Hydropower Royalties

26 Jun 2026 CW Team

Himachal Pradesh chief minister Sukhvinder Singh Sukhu urged Union minister for power, housing and urban affairs Manohar Lal Khattar to raise the state's free power royalty share above the current 12 per cent for central public sector undertaking hydropower projects where the initial critical period of 12 years has ended. He also sought a higher allocation in the 180 megawatt (MW) Baira Siul hydropower project, pressing for 50 per cent free power as the project has completed 44 years since commissioning.

Sukhu highlighted delays in payment of energy arrears owed to the state under Bhakra Beas Management Board projects and set out social and environmental grievances arising from their execution. He said thousands were displaced, the state suffered adverse environmental impacts, and settlement of Pong dam oustees remained unresolved, emphasising the need for timely redress and compensation mechanisms.

The chief minister indicated that Haryana and Punjab may give consent to provide energy arrears totalling 13,066 million units (MU) due as of 31 October 2011, and that where arrears are converted to monetary terms the tentative amount stands at Rs 77.84 billion (Rs 77.84 bn) with a compound interest rate of six per cent to date. He urged that the central authorities reconcile accounts and expedite payments to alleviate fiscal pressure on the state.

Sukhu sought financial assistance for planned urbanisation projects including HimChandigarh and an Aero City at Kangra to spur economic growth, tourism and investment, and said the state has proposed projects amounting to Rs 11.79 billion (Rs 11.79 bn) under the Urban Challenge Fund across 24 urban local bodies. He added that projects worth Rs 6.6 billion (Rs 6.6 bn) were submitted in the first phase and requested release of Rs 123.3 million (Rs 123.3 mn) under the Clean Hilly and Himalayan Cities Initiative to ensure timely implementation of sanitation and waste management programmes.

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