Functional after 22 years, Uhl-III power project starts production

The 100 MW Uhl-III hydroelectric power project in Jogindernagar subdivision of Mandi district has been commissioned after a prolonged wait of 22 years. The project is now generating around 12 lakh units of electricity per day, contributing Rs 1.15 crore in daily revenue. With increased water inflow, power generation recently exceeded 50 MW.

The successful commissioning of the Uhl-III project marks a milestone, as it will provide power to several north Indian states. Once electricity supply is integrated into the four major load dispatch centres nationwide, Himachal Pradesh, Punjab, Delhi, Jammu and Kashmir, Haryana and Uttarakhand will receive supply from the project.

The government anticipates an annual revenue of Rs 200 crore from the supply of electricity based on demand to the load dispatch centre, Shimla, state load dispatch centre Himachal, and the northern region load dispatch centre, Delhi.

Uhl Project Managing Director (MD) Devender Singh said that 100 MW of electricity would be generated as soon as water availability stabilises in May and June. “With the completion of electric tests in all three units of the Uhl project, full-scale power generation is now feasible, which will ensure a consistent source of revenue for the state,” he added.

Additionally, Chief Minister Sukhvinder Singh Sukhu has approved the project’s formal inauguration, preparations for which have already been finalised. The foundation stone of the project was laid in 2003 and after 22 years, all three units of the 110 MW project have successfully commenced production.

The state Electricity Department spearheaded the Uhl project and the Central Electricity Authority granted techno-economic clearance at the September 2002 price level of Rs 431.56 crore. Over the years, the project’s cost escalated to Rs 787.67 crore due to civil, generation, and transmission requirements.

To support financial demands, the Power Finance Corporation, New Delhi, had sanctioned additional Rs 322.40 crore, increasing the total loan amount from Rs 331 crore to Rs 653.40 crore. HPSEB Ltd contributed the remaining Rs 287.44 crore as equity participation.

In October 2024, the Chief Minister had allocated additional Rs 85 crore as sovereign guarantee, supplementing an earlier Rs 100 crore allocation in March 2024. Despite cost escalation and extended construction timelines, the state government remained steadfast in overcoming financial hurdles to ensure the project’s completion.

The Uhl Hydropower Project is a downstream expansion of the Shanan and Bassi powerhouses, both situated in Jogindernagar. With the commissioning of the Phase-III, which generates 100 MW, Himachal Pradesh is making significant strides towards achieving its vision of becoming a green energy hub by 2026.

Northern states to get electricity

• Once electricity supply is integrated into the four major load dispatch centres nationwide, Himachal Pradesh, Punjab, Delhi, Jammu and Kashmir, Haryana and Uttarakhand will receive supply from the Uhl-111 project