Shimla: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has made it clear that the state will not sign a Memorandum of Understanding (MoU) for the 422 MW Kishau multipurpose project until neighbouring states file affidavits before the Supreme Court regarding payment of their share of outstanding BBMB arrears to Himachal Pradesh.
The Chief Minister said the present state government had rejected the agreement for the Kishau project signed by the previous BJP government, under which Himachal Pradesh would have been required to bear a significant share of the cost of power generated from the project.
He said the government’s firm stand had ensured a more favourable financial arrangement for Himachal Pradesh. Under the revised approach, the state is expected to receive around ₹600 crore annually as revenue without making any financial investment in the project, he said.
Sukhu said Himachal Pradesh would now move ahead with the Kishau multipurpose project only after the neighbouring states concerned give an undertaking before the Supreme Court on clearing their share of the Bhakra Beas Management Board (BBMB) arrears owed to Himachal Pradesh.
The issue of BBMB arrears has been a long-standing financial matter between Himachal Pradesh and the partner states of the BBMB system. Himachal Pradesh has been seeking payment of its outstanding share, including amounts linked to its entitlement from BBMB projects and power-related benefits.
The state government has maintained that the financial dues owed to Himachal Pradesh must be addressed before it agrees to arrangements involving major inter-state power and water projects.
According to the Chief Minister, the neighbouring states will have to file affidavits before the Supreme Court in the next hearing, clearly stating their position on payment of the BBMB arrears to Himachal Pradesh.
The Kishau project, proposed on the Tons River along the Himachal Pradesh-Uttarakhand border, is a major multipurpose project involving power generation, water management and other benefits for the participating states.
Sukhu said the earlier agreement would have placed a substantial financial burden on Himachal Pradesh because the state was expected to contribute towards the cost of power generation. The present government, he said, opposed that arrangement and negotiated for a model that would provide financial benefits to the state without requiring a major upfront investment.
He said the state’s position on the Kishau project was aimed at protecting Himachal Pradesh’s financial interests and ensuring that its existing financial claims, particularly the BBMB arrears, were not overlooked.
