Himachal Pradesh Signs Historic MoUs with Telangana for Establishing Seli and Miyar Hydro Power Projects.
First-ever inter-state collaboration to harness hydro power potential and boost renewable energy sector.
Shimla:
In a landmark move, Himachal Pradesh has signed a Memorandum of Understanding (MoU) with the Government of Telangana to establish two significant Hydro Electric Power (HEP) projects – the 400 MW Seli Hydro Electric Power Project and the 120 MW Miyar Hydro Electric Power Project. These projects will be located in the Lahaul-Spiti district, marking the first-ever collaboration of its kind in the history of Himachal Pradesh.
The MoUs were signed today in Shimla by Rakesh Kanwar, Secretary Power, on behalf of the Himachal Pradesh Government, and Sandeep Kumar Sultania, Principal Secretary of Power, on behalf of the Telangana Government. The signing ceremony was attended by Himachal Chief Minister Sukhvinder Singh Sukhu and Deputy Chief Minister of Telangana, Bhatti Vikramarka Mallu.
Both projects, expected to be set up on the banks of the Chenab River, will require an estimated investment of Rs. 6200 crore. They are projected to generate about 5000 direct and indirect employment opportunities for the local youth. As part of the agreement, Telangana Government has already paid an upfront premium of Rs. 26 crore. The MoU also includes a significant provision for Himachal Pradesh to receive 12 percent, 18 percent, and 30 percent free power over the first 12 years, the next 18 years, and the remaining 10 years of the projects, respectively.
After 40 years, the Government of Telangana will transfer both projects to Himachal Pradesh. In addition, Telangana will contribute 1.5 percent of the project cost towards the Local Area Development Fund (LADF) and will provide an additional one percent of free power for LADF after the projects are commissioned. Affected families from these projects will also receive monetary compensation equivalent to 100 units of power per month for a period of 10 years.
On this momentous occasion, Chief Minister Sukhvinder Singh Sukhu expressed his enthusiasm for the collaboration, emphasizing that it marks the beginning of a new era of inter-state cooperation in the renewable energy sector. He invited the Government of Telangana to explore further opportunities for partnership, particularly in power banking or trading. He stated, “Our government is committed to protecting the state’s resources while ensuring that hydro power projects benefit the people of Himachal Pradesh. This is a win-win situation for both states.”
The Chief Minister also reassured that the state government would not allow the exploitation of Himachal’s resources, emphasizing that the state’s water resources are viewed as its wealth. He further pointed out that while the state has harnessed 11,500 MW of renewable energy, much of it has benefited Central Public Sector Undertakings. He assured that the present government is determined to change this and ensure that the state’s hydro power resources are used for the economic benefit of its people.
Deputy Chief Minister Bhatti Vikramarka Mallu, from Telangana, reiterated the importance of this collaboration, stating that the agreement aligns with Telangana’s Clean and Green Energy Policy, 2025. He emphasized that this MoU reflects Telangana’s commitment to ensuring energy security for both states, with an eye on meeting their growing energy demands sustainably. “This partnership with Himachal Pradesh is a significant step towards securing cleaner, greener, and more reliable power for our future,” he added.
The event was attended by several prominent officials, including Health and Family Welfare Minister Dr. (Col.) Dhani Ram Shandil, Principal Advisor Media to Chief Minister Naresh Chauhan, and senior officers from both states, underscoring the importance of this collaboration in advancing both states’ energy goals.
With this partnership, Himachal Pradesh is taking a significant step forward in utilizing its vast hydroelectric potential, setting the stage for a greener and more sustainable future for both states.
