Shimla: The Himachal Pradesh government, led by Chief Minister Sukhwinder Singh Sukhu, has sought a 40 per cent stake in all major hydropower projects in the “power-surplus” state, ThePrint has learnt – a development that comes after the state-imposed water cess became a major political line.
A senior state power department official told ThePrint that the Sukhu government first raised the issue in February. before taking it up once again with Union Power Secretary Alok Kumar when he visited the state on 15 April.
The official said that the Sukhu government had asked for increasing Himachal’s share in major hydropower projects overseen by the Bhakra Beas Management Board (BBMB) and SJVN. worry about demand ThePrint has learned that the projects have repaid the loan and recovered the cost.
While BBMB is a board that comes under the Government of Punjab and oversees the Bhakra Nangal and Beas projects, SJVN, which was earlier incorporated as Nathpa Jhakri Power Corporation (NJPC), is a board between the Union Ministry of Power and the Himachal government. is a joint venture.
The state currently receives 12 per cent royalty from private hydropower companies and has a share of 7.19 per cent in BBMB projects. In addition, official records show that it also holds a total equity of 26.8 per cent in SJVN.
According to the official, the state government is also asking for a review of power projects with central public sector companies like SJVN, especially in cases where there is no stipulation on how long these firms will continue to control the project.
State Energy Secretary Rajeev Sharma confirmed to ThePrint that the state government is indeed pushing for a higher stake in power projects.
“The chief minister was clear on the issue. He wanted the share of Himachal to increase. We have taken up the matter with the central government and the CM is constantly monitoring the developments,” he said, adding that the Sukhu government is currently working on a memorandum to send to the Modi government.
ThePrint reached the Union power ministry via email. This report will be updated when a response is received.
Meanwhile, reacting to the move, an SJVN official, who did not wish to be named, told ThePrint that the company will “cross the line when it comes”. “Nothing is official as of now. The state government has (only) written to the central government,” the official said.
The development comes as the state debates ways to generate revenue. In March, the then four-month-old Congress government had introduced a bill in the state assembly, imposing the tax water cess on 172 hydroelectric projects in the state.
Both Punjab and Haryana objected to the cess, arguing that it would cost them Rs 1,200 crore.
But Sukhu defended the move saying it was within the jurisdiction of the state government to do so.
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what does himachal want
According to government data, Himachal has 172 hydropower projects with a total capacity of 24,500 MW, of which 11,149 MW is being harnessed.
On 30 September 2009, the state government issued a notification directing all power projects in the state to contribute 1 per cent of their profits to the Member of Legislative Assembly Local Area Development Fund (MLA-LAD).
MLA-LAD is a constituency fund provided by the states of India to their MLAs, and is to be used for developmental activities within their constituency.
However, officials told ThePrint that out of 172 projects in the state, only 108 are making this contribution, while the rest have claimed exemption saying they were commissioned before the notification was issued.
Hydropower projects have always been a sore point for Himachal in April 2018 after a fight of nearly a decadeAs per media reports, the state acquired 7.19 per cent stake in BBMB. It had also demanded the same share from states like Haryana and Rajasthan.
In March 2022, the then Chief Minister Jairam Thakur once again demanded that Himachal should be made a partner in BBMB projects in a meeting chaired by Home Minister Amit Shah, according to media reports. However, Punjab opposed the move and since then it has been put on the backburner.
According to official estimates, the state currently generates revenue of Rs 1,000 crore from royalty from hydropower projects.
On 16 April, Sukhu described the state’s demand to increase its share in the projects as “reasonable”.
“The water resources are ours, the land is ours, our people have been displaced (by these projects) and when the companies have paid all dues and are making huge profits, it is an increased share for Himachal Pradesh,” he said. It’s fair to ask.” Said at the press conference.
Its demands include renegotiating the MoU, which does not have any clause on handing over a project by the Central Public Sector Undertaking to the state government.
This condition is 70 years in case of some projects operated by SJVN. Government records show.
“There are some projects where there is no agreement on the time period. This means the CPSU will own the project indefinitely and make profit alone and the state will get only 13 per cent as royalty and local area development fund,” the senior state power department official cited above told ThePrint.
In his press conference, Sukhu said that he had asked to transfer the ownership after 75 years. This, he said, was because the MoUs signed for projects after 2019 have a stipulation of 70 years.
Another issue that has been raised pertains to some of the projects undertaken by SJVN. These include the 210-MW Luhri Stage-I, the 1,172-MW Luhri State-II, the 382-MW Sunni Dam Hydroelectric Project, and the 66-MW Dhaulasiddh Hydroelectric Project.
“There are some issues with the MoU signed between the state government and SJVN on these projects,” the official said. “The power share given to Himachal Pradesh is on a staggered basis – something that is not acceptable to the Chief Minister.”
political issue
Himachal hopes that the state’s hydroelectric projects and additional power generation will help improve its deteriorating financial condition.
In February – two months after coming to power – Sukhu claimed the state owed financial liabilities of over Rs 91,000 crore.
In March, the Himachal Legislative Assembly debated various means of generating revenue through hydropower projects – including the imposition of a water cess.
According to During the proceedings of the assembly, Sukhu had told the house at that time that increasing the state’s share in such projects to 30 per cent would help in achieving Rs 10,000 crore.
But there could be challenges to this plan – the Shannon Power Project is one of the biggest obstacles.
When the states of Himachal and Haryana were carved out of Punjab in 1966, the 10 MW British-era project at Jogindernagar was given to the Punjab government.
A state government official told ThePrint that the land lease for the project was for 99 years and would expire in 2024.
Senior Officials of the Electricity Department cited above He said that the state government has already written twice to the Modi government. Last time in April , To initiate the transfer of Shanan Hydro Electric Project to Himachal, but no response has been received so far.
A former civil servant from Himachal, who did not wish to be named, told ThePrint that the state’s demands could spark a political tussle with Punjab. “These are all political issues. Chandigarh or Haryana will not accept this and Himachal will have to continue fighting for its share in BBMB despite the Supreme Court order.
He was referring to the apex court’s 2011 order, in which it had upheld Himachal’s claim of 7.19 per cent share in BBMB power projects located in the state’s territory.
But Congress MLA Rajesh Dharmani called it Himachal’s “owes” for all the sacrifices made for the hydropower projects.
“Himachal never got its due. The state got 7.19% share in BBMB and that too around 10 years ago. The balance is still due. The Bhakra dam is built within the borders of Himachal Pradesh, but we get almost nothing,” he told ThePrint.
(Edited by Uttara Ramaswamy)