Punjab Government objects to BBMB’s ‘financially unviable’ pumped storage projects

The Punjab Government has objected to the pumped storage projects (PSPs) proposed by the Bhakra Beas Management Board (BBMB), stating that they were neither economically viable nor financially prudent for the partner states.Despite Punjab’s objections, the BBMB has invited expressions of interest from private parties. The BBMB has outlined a plan to generate nearly 13,000 MWs of hydropower through pumped storage projects across the Sutlej and Beas river basins. The plan includes eight self-identified sites, four around the Bhakra Dam and four around the Pong Dam, all located in Himachal Pradesh.The sites around the Bhakra Dam are Lehri in Bilaspur district, Raipur /Dobar in Una, and Majra and Chhakmoh in Hamirpur. The Pong Dam sites include Garial, Balwal, Chaplah and Dodrah in Kangra.Punjab has stated that the draft MoU for the PSPs must align with the Centre’s policies governing renewable energy and storage-based projects. The state has stressed green energy development charges, electricity duty, or free power to Himachal are not applicable to pumped storage systems.The state has expressed concern that subsequent discussions between the BBMB and the Himachal Government failed to clarify key issues, including the applicability of Himachal Pradesh’s Swaran Jayanti Policy, 2022, to PSPs. Punjab has also apprehended that green development charges may not be waived. Himachal has argued that the creation of upper reservoirs would lead to land submergence, displacement and environmental hazards, justifying the charges. Punjab has countered that these fiscal burdens undermine project viability.Punjab has pointed out that PSPs are designed for grid stability alone and questioned the lack of clarity on power sharing and revenue distribution among partner states.

Punjab Government objects to BBMB’s ‘financially unviable’ pumped storage projects

Said they were neither economically viable nor financially prudent for the partner states

Lalit Mohan

Tribune News Service

Punjab Government objects to BBMB’s ‘financially unviable’ pumped storage projects

Said they were neither economically viable nor financially prudent for the partner states

Lalit Mohan

Tribune News Service

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