Will seek higher free power share in PSU projects: Himachal CM Sukhvinder Sukhu

Pratibha Chauhan

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Shimla, May 30

The Himachal Government is set to seek a hike in free power royalty from operational hydroelectric projects, which have become debt-free.

“A cash-strapped state like Himachal, which has a debt of over Rs 75,000 crore, is in dire need of resources. In the absence of any raw material, water in our rivers is our flowing gold. So, we will seek a hike in the royalty of 12 per cent free power from projects that have become debt-free,” said Chief Minister Sukhvinder Singh Sukhu here today. He added that a project becomes debt-free after 12 years and hence the free power royalty share must be enhanced to 30 to 50 per cent.

Hike in royalty up to 50% sought

• Himachal will demand a higher royalty from projects being run by the NHPC, NTPC and the SJVNL that have become debt-free or other projects, the work on which is yet to begin
• The CM says a project becomes debt-free after 12 years and hence the free power royalty share must be enhanced to 30 per cent to 50 per cent
• The state government is also planning to allot future projects only when free power royalty percentage is higher

Sources said that Himachal could demand a higher royalty from some mega projects being run by the NHPC, NTPC and the SJVNL that had become debt-free or some others the work on which was yet to begin.

Sukhu confirmed that Himachal would demand a bigger share in the profits of the hydroelectric power projects, especially the ones being run by public sector undertakings (PSUs). He said, “Unfortunately, the previous BJP government deferred the 12 per cent free power share as royalty for 12 years in the MoUs signed for some projects.”

He hinted that the government was also contemplating to allot future projects only when free power royalty percentage was higher, which would result in higher income to Himachal. The sources said that the government could even give a notice for the cancellation of some of the allotted projects. The issue of higher free power share as royalty was discussed at a meeting of the Directorate of Energy recently.