Kishau Dam hurdle cleared; Himachal gets Rs 2,000 cr relief

The long-pending Kishau Dam Project received a significant boost on Monday after the Centre agreed in principle that beneficiary states will bear the Rs 2,000 crore power component cost associated with Himachal Pradesh’s share in the project, ending an eight-year financial deadlock.

The breakthrough came during a high-level meeting chaired by Union Home Minister Amit Shah in New Delhi, where Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu strongly advocated the state’s position regarding the 422 MW Kishau Dam Project proposed on the Tons River along the Himachal Pradesh-Uttarakhand border.

The project, estimated to cost around Rs 15,000 crore, has faced delays over disagreements on financial responsibilities.  Following discussions, the Centre agreed that Delhi, Haryana and Rajasthan-the principal beneficiaries of the project’s water component-would bear the cost of the power component on behalf of Himachal Pradesh.

Speaking after the meeting, Sukhu described the decision as a major victory for the state. He said the previous state Government had agreed to contribute around Rs 800 crore towards the project, but his administration opposed the arrangement, citing Himachal Pradesh’s limited financial resources.

The Chief Minister argued that while the Centre provides 90 per cent grant assistance for the water component of the project, similar support should be extended for the power component.

He also pointed out that Himachal Pradesh would bear the social and environmental costs of the project, including displacement in affected areas, and therefore should not be burdened with additional financial liabilities.

Apart from securing relief on the cost-sharing issue, the state is expected to gain substantially from power generation once the project becomes operational.

According to Sukhu, Himachal Pradesh will receive around 100 crore units of electricity annually from its share of the project, generating revenue estimated at nearly Rs 600 crore per year.

The Chief Minister said the development reflects the state’s continued efforts to secure its rightful share in hydroelectric projects and safeguard its financial interests. He termed the agreement a significant achievement in the state’s broader push to resolve issues related to pending dues and benefit-sharing from power projects.

The meeting was attended by Union Power Minister Manohar Lal Khattar, Union Jal Shakti Minister CR Patil, chief ministers of beneficiary states, senior officials from the concerned ministries, and representatives of the Himachal Pradesh Government.