Shimla | March 17, 2025
The central power enterprises operating in Himachal Pradesh have contributed a total of ₹1,010.70 crore to the state government in the last financial year through their various power projects. These projects are governed by different MoUs, under which the state receives royalty power and financial contributions under Local Area Development Authority (LADA) provisions. However, despite this substantial payment, these enterprises still owe ₹16.39 crore to the Himachal Pradesh State Electricity Board (HPSEB) for maintenance charges.
Pending Dues & Staffing Issues
Additionally, concerns have been raised regarding the deployment of state electricity board employees on central deputation in these projects. While SJVNL and BBMB have employed 63 officers and staff members from HPSEB, other enterprises have not followed suit. As per available data, NTPC, SJVNL, NHPC, and BBMB are the key power-producing enterprises in the state. Although HPSEB has provided manpower to these projects, no officers or employees have been officially absorbed into their workforce.
At present, these power projects owe a total of ₹16,39,29,285 in outstanding payments, which has been pending since FY 2023-24, exceeding a one-year timeframe. Additionally, as of March 10, 2025, a total of ₹551,41,65,063 is to be paid to HPSEB under power sale agreements.
Breakdown of Power Royalties
- NTPC’s Kol Dam Project (800 MW) – ₹191 crore in royalties
- SJVNL’s Nathpa Jhakri Project (1,500 MW) – ₹395.76 crore
- SJVNL’s Rampur Hydro Project (412 MW) – ₹108.95 crore
- NHPC’s Chamera-I (540 MW) – ₹133.97 crore
- NHPC’s Chamera-II (300 MW) – ₹75.87 crore
- NHPC’s Chamera-III (231 MW) – ₹53.92 crore
- NHPC’s Baira Siul Project (180 MW) – ₹33.09 crore
- NHPC’s Parvati-III Project (520 MW) – ₹18.14 crore
Government Receives 12% of Power Output
As per regulations, the state government is entitled to 12% of the total power generated from these projects as royalty. There are ongoing discussions to further increase the free royalty share, though significant hikes have not been implemented yet. Nevertheless, these contributions provide a steady revenue stream for the state.
Financial Gains & Future Projects
The state government is benefiting significantly from these projects, generating substantial revenue. However, despite efforts to reallocate stalled projects, progress remains slow. Tenders for 20 new projects were floated for March 20, but there has been a lack of bidders.
Solar Power Projects Gain Momentum
In the current financial year, the state has already generated over ₹1,600 crore from power projects, marking an annual revenue increase of ₹100-200 crore. This number is expected to rise further next year with the commissioning of new projects, including solar energy initiatives, which are gradually becoming operational.
