States » NorthPosted at: Sep 15 2026 7:34PM


Kishau project to generate Rs 1,200 crore annually for Himachal: CM

Shimla, September 15 (UNI)Himachal Pradesh is expected to earn around Rs 1,200 crore annually from the 422-MW Kishau power project once it becomes operational, Chief Minister Thakur Sukhvinder Singh Sukhu said on Tuesday, describing the agreement on the project as a significant achievement for the state.
Interacting informally with mediapersons in New Delhi after signing of the Memorandum of Understanding (MoU) with beneficiary states for the Kisha Multi-Purpose Project, Sukhu said Himachal would receive 211 MW of electricity generated from the project without having to bear the cost of generation.
He said the expenditure on generating Himachal's share, which could have run into thousands of crores of rupees, would now be borne by the states utilising the project's water.
The Chief Minister said the state government had accorded the highest priority to protecting Himachal's interests during prolonged negotiations and had succeeded in securing key decisions in its favour.
According to Sukhu, earlier estimates had projected an annual income of about Rs 600 crore for Himachal from the Kishau project. However, revised estimates indicate that the state is likely to earn around Rs 1,200 crore annually after completion, strengthening its financial position and creating greater economic benefits for the people.
He said the state had refused to accept an earlier arrangement under which Himachal was required to bear the cost of electricity generated for its share.
The government continued negotiations for nearly three years to safeguard the state's interests, resulting in the financial burden being shifted to the beneficiary states, he said.
Sukhu said families affected by the Kishau project would be provided adequate compensation under applicable land acquisition provisions.
The number of affected villages in Himachal would be comparatively smaller than in Uttarakhand, he added.
The Chief Minister said Himachal would continue to pursue its rights over water resources and seek a greater share of benefits from the state's hydropower and renewable energy potential. Referring to the BBMB and Shanan power project issues, he said public sector undertakings were benefiting from nearly 14,000 MW of energy potential in the state.
At present, Himachal receives 12 per cent free power royalty and one per cent under the Local Area Development Fund.
Sukhu said, "The state was demanding 30 per cent free power royalty from the 12th to the 30th year of a project, after the project becomes free from cost, and transfer of the project to the state after 40 years."
If an organisation continues operating the project beyond 40 years, Himachal should receive 50 per cent free power royalty, he said.
Sukhu said Himachal provides ecological services worth around Rs 90,000 crore annually to the country through clean air, glacier conservation and maintaining water availability for major rivers. However, the state also suffers losses of thousands of crores every year due to natural disasters.
He said institutions and companies benefiting from Himachal's natural resources should provide the state an appropriate economic return for its ecological services.
The Chief Minister also said Himachal and Uttarakhand would have equal representation in the Kishau project, with 50 per cent of employees from each state.
He expressed hope that construction would be completed at the earliest.
UNI BN
Tags: #Kishau project to generate Rs 1#200 crore annually for Himachal: CM
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