New Delhi – In a crucial meeting between Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu and Union Minister for Power R.K Singh, the issue of royalty in power projects took center stage. The Chief Minister, expressing concerns over potential revenue losses, demanded the Union Minister to address the deferred royalty in projects executed by SJVN and NHPC in the state.
During the deliberations, Chief Minister Sukhu emphasized the need to protect the state’s interests, requesting free power in alignment with the state’s power policy. He also advocated for the return of power projects to the state after forty years. The Union Minister, R.K Singh, acknowledged the issue and agreed in principle that the state should receive a minimum royalty of at least 12 percent.
In a significant development, R.K Singh suggested a comprehensive review of the royalty matter and other points of concern raised by the State Government. The review, to be conducted by a team of officers from both sides, will include the Central Electricity Authority as an independent authority. The Union Minister committed to completing the review by January 20, responding positively to the Chief Minister’s request.
The Himachal Pradesh Government has been grappling with the issue of royalties in hydro projects, particularly those promoted by SJVN. Dissatisfied with the progress and royalty returns from SJVN’s hydro projects, the state government is actively working on taking control of three hydropower projects – Sunni, Luhri, and Dhaulasidh – from SJVNL.
In a departure from the previous government’s approach, the present administration has significantly increased royalty rates in power projects. Previously set at 12, 18, and 30 percent, the new rates stand at 20, 30, and 40 percent, respectively. Notably, projects granted to SJVN were reportedly yielding no more than five percent in royalty, prompting the state government to reevaluate the terms of these projects.
The outcome of the upcoming review will play a crucial role in determining the future trajectory of power projects in Himachal Pradesh. With the Union Minister’s commitment to addressing the state’s concerns, the stage is set for a potential recalibration of power project dynamics, ensuring a more equitable distribution of royalties for the benefit of the state and its residents.
