Himachal seeks higher power royalty share from center for hydel projects

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Shimla, June 17

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has urged the Center to increase the state’s royalty share of free electricity from hydropower projects, arguing that the existing arrangement does not adequately reflect the contribution and sacrifices made by the hill state in hosting such projects.

During discussions with Union authorities, Sukhu sought an increase in the state’s royalty entitlement beyond the current 12 percent, particularly for older hydropower projects that have been operational for decades. He highlighted the case of the Baira Siul hydroelectric project, which has been in operation for 44 years, and called for a significantly higher royalty share from such ageing assets.

The Chief Minister also raised the issue of pending energy arrears linked to Bhakra Beas Management Board projects. According to the state government’s assessment, more than 13,000 units of energy arrears remain outstanding. If settled monetarily, the amount would be nearly ₹7,784 crore, including interest calculations.

Emphasising the long-term impact of major dam and hydropower projects on local communities, Sukhu pointed to the displacement of thousands of residents and the environmental challenges faced by the state during project execution. He noted that several rehabilitation concerns connected to displaced families remain unresolved.

Apart from power-related matters, the Chief Minister sought financial assistance for key urban development initiatives, including the proposed HimChandigarh project and Aero City in Kangra. He said the projects are aimed at promoting planned urbanisation, economic activity, tourism, and investment in the state.

Sukhu also requested support under various central schemes to accelerate infrastructure development across urban local bodies. He sought funding for projects proposed under the Urban Challenge Fund and called for the release of assistance under programmes focused on sanitation, waste management, and urban services.

The Chief Minister further urged the Center to clear pending funds for already sanctioned projects and approve a fresh set of proposals submitted by the state under urban development schemes.

In addition, he requested financial support of ₹18 crore over five years to implement a QR code-based digital property identification system across urban local bodies. The initiative is intended to provide unique property identities and strengthen digital governance and service delivery.

The requests form part of Himachal Pradesh’s broader effort to secure greater financial resources for infrastructure expansion, urban modernisation and a larger share of benefits generated by hydropower projects operating within the state.