Himachal earns Rs 3K Cr income  from hydropower in last 3 years

Himachal Pradesh having share in 757 hydropower project generated about 10204 million units power earning total income of Rs 3000 Crore in last three years. This was stated by Chief minister Sukhvinder Singh Sukhu who holds the portfolio of finance while giving a reply on private member resolution brought by BJP Member Mr. Vipin Singh Parmar during private Member day. 

Member wanted the house to pass an resolution to increasing the state’s share in hydro power projects in the state and non-compliance of the dividend agreement.

 Chief minister agreed on the contents of resolution stated in the house that due to noncompliance of dividend and increasing state share in the interstate and Center joint share project incurring huge loss of revenue to state despite state water, lands, Environment  and projects are being running and being constructed in the state. He said that after getting additional resources of revenue from water cess, state royalty of 12 p c free power state government would provide 300 unit free power to domestic consumers. 

Mr Sukhu said that member showed the concern over  economic loss to the state due to flawed power policy. He said that out of the total existing 24,500 MW in the state, 11,149 MW of hydropower projects have been harnessed, which is  It is completely green energy and 58 projects of 2454 MW capacity are under construction in various stages and 726 projects of 8112 MW capacity are at different stages of acceptance. 

“Out of the total production capacity of the state, about 46 per cent capacity is in the joint and central sector.  In which up to 12 pc of the rate of free electricity available to the state, while 30 pc  of the capacity is allocated under the private sector, in which the rate of free electricity ranges from 0 to 30 pc. ” he stated

Chief minister said that out of total 11688 MW , 26  hydro power projects  in joint and center sector , 12 projects of about 7458 MW have been exploited, three projects of 1076 MW capacity are under construction stage and 11 projects of 3155 MW capacity are at various stages of approval. He said that  Shanan project was completed in the year 1932, Bhakra Dam project in the year 1963, Pong Dam project in the year 1977, Beas Sutlej Link in the year 1978, Baira Siul project in the year 1980.

In the exploited 7457.74 mw Central and Joint Sector including project state have no share in Shanan hydropower project, Mr Sukhu said informing the house that lease agreement of 110 mw Punjab Power Corporation Ltd in Shanan project having zero equity of Himachal Pradesh. Replying to status of Shana and BBMB project Chief minister said that Under Section 48 (1) of the Punjab Reorganization Act 1966, certain assets were divided between the newly formed state of Punjab, Haryana and the then Union Territory of Himachal Pradesh.  This division was done in accordance with the decision taken in the meeting held on 17.04.1967. Some assets were distributed. This distribution was done in accordance with the decision taken in the meeting held on 17.04.1967. In a letter state informed by the Central Government’s Shanan Hydro Electric Project was transferred to the newly formed Punjab State and Bassi Hydro Electric Project. Allotted to the then Union Territory of Himachal Pradesh. Himachal Pradesh government is not getting royalty in Shanan hydropower project, although the government gets 500 kilowatt free electricity and royalty at the rate of Rs 3.50 per kilowatt once a year on maximum power generation. In addition, the Government of Himachal Pradesh gets 1000 KW power from this project at the purchase price fixed by Punjab, which is about 5.26 million units every year. The lease deed of Shanan project is going to expire in the year 2024. Government has already taken several steps in this context. He said that he had written a letter to Punjab government to handover the project to state by next year as state would took over it by next year and appointed its own engineers to rebuild the same. Matter has been conveyed through chief secretary also. He said that In 1778.73 mw Bhakra Nangal power project  990 me Beas Sutlej Link , Paug Dam (396 mw ). Mr Sukhu said that state’s hare and equity of 7.19 percent has been determined in the BBMB projects by the High Court, which is being given by BBMB since November 2011. IN the project which are at various stages of approval, in which Himachal Pradesh’s share / equity has been fixed at five percent and there is a provision to provide 12 percent free electricity (royalty). SJVNL allotted 13 hydropower projects with a total capacity of 4801 MW, out of which 2 projects of 1912 MW capacity are Nathpa Jhakdi (1500 m w and Rampur (412 mw) have been harnessed, Himachal Pradesh’s share and equity 25 pc and 30 percent and 12 percent free electricity (royalty) is being provided in these projects. In two projects of 276 MW capacity respectively Luhri Stage-I (210 MW) and Dhaulasiddh (66 MW) are under construction stage. In these projects, there is a provision to provide free electricity (royalty) to Himachal Pradesh as at the rate of 4 pc from 1st to 10th year, at rate of 8 pc from 11th to 25th year at rate of  12 pc from 26th to 40th year and  25 pc beyond 40 year. NHPC has been allotted seven hydro power projects with a total capacity of 3071 MW, out of which five projects of 1771 MW are Baira Siul (180 MW), Chamera-I (540 MW), Chamera-II (300 MW) respectively.  ), Chamera-III (231 MW) and Parvati-III (520 MW) have been exploited, 12 pc royalty is being provided to state from these projects.  Parvati-II (800MW) is under construction stage, in this project there is a provision to provide 12 p c royalty to Himachal Pradesh and Dugar (500MW) is at various stages of approval.  Provision to provide royalty to state as at the rate of 4 pc from 1st to 10th year, at rate of 8 pc from 11th to 25th year at rate of 12 pc from 26th to 40th year and 25 pc beyond 40 year. To NTPC, 800 MW Kol Dam Hydro Electric Project has been allotted .  The construction work of this project has been completed and 12 percent royalty is being provided to the Government of state through this project.   Various projects of 6000 MW capacity have been allotted under private sector with provision of free power ranging from 0 to 30 percent. Apart from this, there is also a provision to take Up-front premium and Capacity Addition Charges from private sector projects. Private sector projects are awarded for 40 years. After which there is a provision to transfer these projects to the government without any liability. State Sector Projects. , Various projects of 3800 MW capacity have been allotted under the state sector. In which there is a provision to take free electricity from 0 to 12 percent.