SJVN Asked to Provide Final Response on Royalty Issues on 3 Power Projects in HP by Jan 15, 2025
Union Power Minister Manohar Lal has instructed SJVNL officials to submit a final response regarding three hydropower projects in Himachal Pradesh by January 15, 2025, following discussions with the state’s Chief Minister Thakur Sukhvinder Singh Sukhu on royalty and compliance with the state’s energy policy.
November 08, 2024. By Mrinmoy Dey
This comes after the Union Minister held a meeting with Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu at Shimla to discuss various issues of power and housing related to Himachal Pradesh.
In the meeting, the Chief Minister raised the matter of royalty aligned with the State Government’s energy policy. He outlined the policy, which mandates 12 percent royalty for the first 12 years, 18 percent for the subsequent 18 years and 30 percent for the next 10 years in the power projects. He said that private companies already comply with this policy and emphasised that central PSUs should also follow it as well.
The Chief Minister asserted that if SJVNL is unwilling to comply with the state’s energy policy, the Himachal Pradesh government is ready to take over the 210 MW Luhri Phase-1, the 382 MW Sunni Project and the 66 MW Dhaulasidh hydropower projects.
Sukhu assured that the State Government is willing to reimburse SJVNL for the expenses incurred so far on these projects. He also pointed out that SJVNL commenced construction on these projects without signing an implementation agreement. He said that the people of Himachal Pradesh should receive its rightful share from water resources.
The Chief Minister also sought the Union government’s assistance in securing the return of the 110 MW Shanan Project of Mandi district to Himachal Pradesh from Punjab. He stated that Punjab’s lease period for the project has ended and urged the Union government to intervene to ensure the project’s transfer to Himachal Pradesh, along with all its assets.
Sukhu said that the area of the Shanan Project was never part of the erstwhile Punjab, therefore, the Punjab Re-organization Act of 1966 does not apply. In response, the Union Minister assured him that he would review the Act and take appropriate action accordingly.
The Chief Minister also urged the Union Government to direct the Bhakra Beas Management Board (BBMB) to release 13,066 million units of outstanding power arrears owed to Himachal Pradesh for the period from November 1996 to October 2011.
He said that despite a Supreme Court ruling in favour of the State, Himachal Pradesh has yet to receive its rightful share from the concerned States. The Union Minister assured that he would convene a joint meeting of the stakeholder States to work toward a consensus on this issue.
During the discussions, the Union Power Minister directed officials to expedite the implementation of the Revamped Distribution Sector Scheme (RDSS) in Himachal Pradesh, emphasising that it is crucial for the State to ensure smart metering and reduce power losses.
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