HP & Telangana Ink MoUs for Hydro Projects

Shimla, Mar 29 (PTI) The Himachal Pradesh government on Saturday inked a Memorandum of Understanding (MoU) with the Government of Telangana for establishing 400 MW Seli and 120 MW Miar Hydro Electric Power Projects in Lahaul-Spiti district.

The MoUs were signed by Secretary Power Rakesh Kanwar on behalf of the HP government and Principal Secretary of Power Sandeep Kumar Sultania on behalf of the Telangana government in the presence of Chief Minister Sukhvinder Singh Sukhu and Deputy Chief Minister of Telangana Bhatti Vikramarka Mallu, a statement issued here said.

Both the projects are expected to be set up with an estimated cost of Rs 6,200 crore on the bank of Chenab river and are set to generate direct and indirect employment to about 5,000 youth of the state.

As per the agreement, the Telangana government has paid Rs 26 crore as upfront premium and after the commissioning of both these projects, HP will receive 12 per cent, 18 per cent and 30 per cent free power for the first 12 years, next 18 years, and remaining 10 years, respectively, under the new Energy Policy of the state government. After 40 years, both the projects would be transferred to Himachal Pradesh.

Additionally, the Telangana government would contribute 1.5 per cent of cost of projects towards Local Area Development Fund (LADF) and provide additional 1 per cent free power for LADF after commissioning.

The families that will be affected by these projects will also receive monetary benefits equivalent to 100 units per month for a period of 10 years.

Sukhu said this collaboration marks a new era of inter-state cooperation in the renewable energy sector. He also invited the government of Telangana to explore further partnership in power banking or trading.

"Our government is committed to protecting the state's resources while ensuring that hydro power projects benefit the people of the state. We will extend full cooperation to the government of Telangana to establish both the projects and look forward to the commencement of construction earliest. These agreements are win-win situations for both states," he added.

He said the state government was recognising water resources of the state as its wealth and was undertaking radical reforms in the power sector to make Himachal a self-reliant state.

Mallu said the Telangana government was committed towards ensuring energy security for both states keeping in view its fast-growing demand. "In line with the Telangana Clean and Green Energy Policy, 2025, this MoU reflects our commitment to diversifying our energy portfolio while ensuring environment sustainability," he said.

"By partnering with Himachal Pradesh, we are taking a significant step towards securing cleaner, greener and more reliable power for our future," he added.