In a decisive move reflecting its assertive energy policy, the Himachal Pradesh government is intensifying its efforts to reclaim control over the state’s vital hydroelectric power assets. After initiating correspondence with the Punjab government regarding its pending share in Bhakra Beas Management Board (BBMB) projects, the state administration has now turned its focus towards hydel projects currently under the development of central public sector entities.
The latest step in this direction is the decision to take over three under-construction hydroelectric power projects originally allotted to a central energy company. These include projects with capacities of 382 MW, 210 MW, and 66 MW, respectively, which had been sanctioned by the previous state government. The decision marks a significant policy shift, emphasizing the present government’s intent to secure greater revenue and control over natural resources developed within its geographical boundaries.
This takeover decision comes in the wake of unsuccessful negotiations to revise the terms and conditions of implementation. The state government has proposed a new framework that includes a phased free power share of 12%, 18%, and 30% across the life cycle of the projects and mandates the return of the projects to the state after a 40-year concession period. The administration argues that these terms are aligned with the state’s long-term vision for energy sustainability and equitable distribution of hydroelectric revenue.
The central company managing these projects, however, has expressed its dissatisfaction with the new terms. The company insists on adhering to the earlier agreements that included significant waivers, such as reduced obligations for free power supply during the initial 12 years and exemption from handing over the projects after four decades. These relaxations, the firm claims, were essential for making the high-cost projects financially viable, bringing the electricity tariff down from an otherwise unmanageable ₹8–8.50 per unit to an acceptable ₹5.50–₹5.75 per unit, which is in line with the Central Government’s investment approval benchmarks.
The state’s firm stance has now paved the way for a potential legal showdown. The central entity has indicated that any scope for a mutual resolution has ended, and the matter will likely be resolved through judicial intervention.
This development is seen as part of the broader strategic shift by the state to reclaim and manage its energy assets more effectively. Earlier, the government had written to Punjab to assert its rightful share in BBMB projects—an issue that has long been under contention. By extending this approach to other hydroelectric ventures, the state is clearly signaling its intent to maximize resource control and financial returns from its vast hydropower potential.
While the central companies may resist the changes citing previous agreements, the state’s position is rooted in updated policy priorities and a renewed focus on energy sovereignty. The coming weeks are expected to witness intensified legal and administrative activity around these projects, possibly influencing the future landscape of public sector energy development in the region.
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