Shimla – In a decisive move to ensure equitable benefits for the state, Himachal Pradesh is embarking on a mission to secure fair royalties in power projects. Recognizing the pivotal role of hydroelectric ventures in the state’s economic growth, the government is championing a policy that seeks to establish a just distribution of revenues over the operational lifespan of power projects.
During a recent review meeting of the Power Department, Chief Minister Sukhvinder Singh Sukhu underscored the government’s commitment to prioritizing the interests of its people. Drawing attention to the upcoming meeting with the Union Power Minister, there is a revealed intent to address the critical matter of enhancing royalties derived from power projects. The proposed policy outlines a progressive royalty structure, with projects contributing 20 percent, 30 percent, and 40 percent to the state coffers during the first 12 years, the subsequent 18 years, and the remaining 10 years, respectively.
This move, if approved, is poised to significantly impact the state’s revenue stream, providing a steady and increasing influx of funds that can be directed towards crucial developmental initiatives. The emphasis is on the additional revenue generated through enhanced royalties playing a pivotal role in supporting the state’s infrastructure projects, social welfare programs, and environmental conservation efforts.
The proposed policy aligns with Himachal Pradesh’s broader strategy to leverage its abundant natural resources for sustainable development. By negotiating for a more favourable royalty structure, the state aims to ensure that it receives a fair share of the economic benefits generated by power projects operating within its borders.
