Centre agrees beneficiary states to bear Rs 2,000 crore power component cost; Himachal to get Rs 600 crore annual revenue from Kishau Dam
The Himachal Pradesh government on Tuesday claimed a major breakthrough in the long-pending 422 MW Kishau Dam Project, with Chief Minister Sukhvinder Singh Sukhu announcing that an eight-year deadlock over the state’s financial liability has been resolved in favour of Himachal Pradesh.
The development came during a high-level meeting held in New Delhi and chaired by Union Home Minister Amit Shah. Chief Minister Sukhu attended the meeting along with Union Power Minister Manohar Lal Khattar, Union Jal Shakti Minister C.R. Patil, chief ministers of beneficiary states and senior officers of the concerned ministries. Himachal Pradesh Chief Secretary K.K. Pant, Principal Advisor to the Chief Minister Ram Subhag Singh and Director Energy Rakesh Prajapati were also present.
The 422 MW Kishau Dam project, proposed on the Tons River along the Himachal Pradesh-Uttarakhand border, is estimated to cost around Rs 15,000 crore. According to the Chief Minister, the Centre has agreed in principle that the Rs 2,000 crore cost of the power component on Himachal Pradesh’s side will be borne by the beneficiary states of the water component — Delhi, Rajasthan and Haryana.
Sukhu said the previous BJP government had agreed to contribute Rs 800 crore towards the project, but the present government refused to accept the burden, considering the state’s strained financial position. He said that while the Centre is providing 90 per cent grant for the water component of the project, it was not justified to impose the cost of the power component on Himachal Pradesh.
The Chief Minister said the state would bear the maximum impact of the project as people in the affected areas would face displacement. Therefore, Himachal Pradesh’s contribution to national development should be compensated suitably instead of placing additional financial liabilities on the state.
He said the latest decision has protected the interests of Himachal Pradesh and removed a major financial burden. Once the project is completed, the state will receive its share of 100 crore units of electricity annually from the power component.
According to Sukhu, this allocation is expected to generate nearly Rs 600 crore in annual revenue, providing a significant boost to the state’s resources.
The Kishau Dam, besides generating 422 MW of electricity, is also expected to play an important role in meeting the water requirements of Delhi, Rajasthan and Haryana, making it a key inter-state infrastructure project in northern India.
