It is wiser for Himachal not to  Squander  Its Hydropower Potential: A Golden Opportunity is Slipping Away? 

Shimla— Himachal Pradesh, once hailed as the potential powerhouse of India with an estimated 25,000 MW hydropower capacity, has achieved only a fraction of its promise.

In the last five decades, state-built projects have added less than 500 MW, raising concerns over policy inertia and missed economic opportunities.

It was only through the visionary leadership of Kailash Chand Mahajan that Himachal Pradesh managed to secure a meaningful stake in the hydropower sector.

Under his guidance, Nathpa Jhakri Power Corporation (now Satluj Jal Vidyut Nigam Ltd. — SJVNL) was established as a joint venture, with the state holding 25% equity.

This strategic move led to the construction of landmark projects such as the Nathpa Jhakri project in 2003 and the Rampur project in 2014, which together boast an installed capacity of about 2,000 MW and generate 10 TWh of electricity annually.

Thanks to its equity participation, Himachal Pradesh today receives approximately 1.2 TWh of free power annually, along with a proportional share of 2.5 TWh from SJVNL's production.

Moreover, SJVNL has emerged as not only a green energy leader but also a significant employer in the state, providing more jobs to local residents than all other companies operating in Himachal combined.

Yet, despite this success, experts argue that the state has largely failed to capitalise on its immense hydropower potential.

The pace of new project development has slowed to a crawl over the past decade, hampered by bureaucratic red tape, shortsighted political decisions, and lack of strategic direction.

Hydropower, once a golden goose, is now facing stiff competition from rapidly advancing solar and wind energy sectors.

In this context, industry voices and policy experts strongly recommend that the state government should proactively allow SJVNL to execute major power projects within Himachal Pradesh.

With its proven track record, strong state partnership, and deep-rooted local employment, SJVNL is well-positioned to revitalise the sector and bring much-needed momentum to Himachal’s energy ambitions.

There is still time, they say, to salvage this opportunity — but swift action is critical before the hydropower era fades completely from the state’s growth story.