Himachal’s 5-member team to plead case with Central Electricity Authority

Pratibha Chauhan

Shimla, January 8

A team of five senior officers will place the state government’s viewpoint on protecting Himachal’s interests in hydroelectric power projects before the Central Electricity Authority (CEA) to resolve the dispute with Satluj Jal Vidyut Nigam Ltd (SJVNL).

Higher free power share as royalty

• Five senior officers from the Energy Department, HPSEB and the HPPC will plead the case before the CEA to get a greater free power share as royalty
• The state government had issued a show-cause notice to the SJVNL for the cancellation of three hydroelectric projects, seeking more free power as royalty

Five senior officers from the Energy Department, Himachal Pradesh State Electricity Board (HPSEB) and the Himachal Pradesh Power Corporation (HPPC) will plead the case before the CEA to get a greater free power share as royalty. Efforts are on to amicably resolve the dispute. The development comes close on the heels of a meeting of Chief Minister Sukhvinder Singh Sukhu with Union Power Minister RK Singh in New Delhi two days ago. The CEA is likely to hold a meeting with both parties before January 20.

It may be recalled that Himachal Government had issued a show-cause notice to the SJVNL for the cancellation of three hydroelectric projects — 66 MW Dhaula Sidh (Hamirpur), 210 MW Luhri (Mandi) and 382 MW Sunni (Mandi), seeking more free power as royalty.

It has been reliably learnt that the Union Power Ministry has entrusted the task of resolving the dispute between the Himachal Government and the SJVNL over the three projects to the CEA, which will listen to both sides to resolve the dispute amicably and avoid litigation. The Himachal Government has taken the plea that the SJVNL has not signed the implementation agreements for these projects despite repeated requests.

As a precautionary measure, the SJVNL had moved the Himachal High Court against any coercive action by the Himachal Government to take over the three power projects allotted to it. The court had directed the state government not to take any action with regard to the three projects. The matter has been listed for hearing on March 13 when the High Court opens after winter vacation.

The Directorate of Energy had issued a letter to the SJVNL on December 20, 2023, stating that in view of the non-acceptance of the terms and conditions of the State Energy Policy, the Himachal Government was left with no option but to take over the projects.

The state Cabinet had in August 2023 amended the Himachal Pradesh Power Policy to ensure a greater royalty from projects. The Himachal Government has now sought 15 per cent royalty for the first 12 years, 20 per cent for next 18 years and 30 per cent for the last 10 years. As per the amended policy, the power projects will be handed over to the state government after 40 years of their commissioning.