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Tuesday - April 08, 2025
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REGD.-HP-09-0015257
02:24 PM
Tuesday - April 08, 2025
Weather: 16°C
REGD.-HP-09-0015257
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Himachal Eyeing State Control Over SJVN and NHPC Hydropower Projects is fraught with Legal Tangles and it needs more than what meets the eye.
Shimla:
In a redefining policy initiative the Himachal Pradesh government under Chief Minister Sukhvinder Singh Sukhu has decided to take back around 1,000 MW of hydroelectric projects previously allotted to central PSUs — NHPC and SJVN — reopening a complex chapter of revenue imperatives, legal entanglements, and economic calculations.
These projects- Luhri Stage-I is in Satluj, Dhaulasidh is in Beas and Dugar in Ravi basin are under execution.
On the other hand, the projects alloted to private players under earlier regimes were primarily in the Chenab basin in snowbound Lahaul-Spiti region.
The private players were giants like Tata Power, Moserbaer, Reliance Power, and DCM Shriram during.
Under the hydro policy framed during the tenure of late Chief Minister Virbhadra Singh, private developers were obligated to supply free power to the state government in a progressive slab system: 12% for the first 12 years, 18% for the next 18 years, and 30% thereafter until the project was handed over to the state after 40 years in functional condition.
However, private developers soon raised red flags about economic viability, citing the unique challenges of constructing in Lahaul-Spiti’s harsh terrain.
With the region cut off for nearly five months a year and severe winters curtailing construction to just seven months annually, developers argued that project costs could escalate by 50–60%.
Acknowledging these concerns, the then Virbhadra Singh government agreed to defer the recovery of free power dues in the initial 10 years post-commissioning, providing breathing space for loan repayments.
Despite these concessions, most private projects stumbled into legal disputes, eventually leading the government to cancel the allotments on various grounds.
The developers, however, took the matter to courts and arbitration, where disputes remain unresolved to this day.
In the subsequent Jai Ram Thakur regime, a shift in strategy saw several of these disputed projects handed over to central PSUs — NHPC and SJVN — with major policy relaxations to sweeten the deal.
Notably, the PSUs were allowed to pay a flat 12% free power across the project life cycle, ditching the earlier stepped slabs, and the requirement of handing over the projects to the state after 40 years was scrapped.
If NHPC and SJVN had commissioned these projects under such relaxed terms, Himachal Pradesh stood to lose roughly ₹200 crore in annual revenue at current power rates of ₹4.50 per unit — a cumulative shortfall of nearly ₹8,000 crore over 40 years.
Given these numbers, the current government’s decision reclaiming the these projects is financially prudent for the state.
However, the road ahead is laden with uncertainties.
NHPC and SJVN are expected to legally contest the cancellation of their allotments, potentially stalling any fresh bids.
Even private developers, as history shows, have not hesitated to seek legal remedies.
The subjudice status of many of these projects casts a shadow over future allotments.
Fresh agreements with new developers, if pursued, will need to account for pending court decisions.
Telangana’s example, where two such cancelled projects — Seli (400 MW) and Miyar (120 MW) — were picked up, offers some precedent, though the terms remain unclear.
Skepticism also clouds private sector interest in these projects
The old conditions, especially high free power slabs, could deter serious bidders. The viability becomes questionable, especially with the burden of free power commitments.
Against this backdrop, the state government could have exercised its best option by reserving these projects for execution within the state sector in the past.
By doing so, Himachal could have reduced the free power burden and cut generation costs by up to ₹1 per unit, making projects more viable.
But the change in regimes also changed the priorities of the government.
Professionalizing the Himachal Pradesh Power Corporation Ltd. (HPPCL) to the standards of NHPC and SJVN could have been the crucial next step — albeit an ambitious one.
As the Sukhu government doubles down on asserting energy sovereignty, Himachal’s hydro dreams hinge on its ability to navigate legal storms, restore investor confidence, and build its own capacity to harness its water wealth.
Both NHPC and SJVN could challenge the cancellation of their allotments in court, following the precedent set by private developers who have contested similar decisions through arbitration and legal channels.
Even the Dugar project, which was allotted to NHPC, remains sub judice, underscoring the legal complexities awaiting the state.
The government has deployed an emulator to study the projects to SJVN and NHPC. Much will depend on its findings and what next step the the state government takes.
Further, Himachal Pradesh holds equity stakes only in SJVN projects, not NHPC.
Thus, while the state will continue to receive its share of power from these equity stakes, revenue potential is directly tied to its ability to retain control over future project development.
A crucial question remains: will there be fresh takers for these projects under the old conditions that the Sukhu government has reassert.
Experts are skeptical. The viability of these projects is in serious doubt, especially given the current structure of free power obligations that private players are expected to meet.
With high free power slabs and other cost factors, private sector enthusiasm is expected to be muted.
However, this path requires significant institutional strengthening and a complete overhaul of the state-run corporations which on the face of it are mired in corruption and corporate issues, lacking both expertise and professionalism that SJVN and NHPC have.
The state need to professionalize HPPCL (Himachal Pradesh Power Corporation Limited) on the lines of NHPC and SJVN.
It is a "tall task" but a necessary step for long-term self-reliance in power generation and enhanced revenue realization.
As the stare government embarks on this ambitious restructuring of Himachal’s hydropower landscape, the vision is clear: to build energy sovereignty, bolster state revenues, and create a robust public-sector-led growth model.
But the road ahead will demand patient planning, legal resilience, and institutional grit.
Track record of HPPCL and HPSEBL inspires little confidence at this stage. Organizations, dealing with power sector, headed by bureaucrats, not by technocrats, is a major concern.
Can the state government inject extra power in its enterprises? Wishing and making good money is one thing, but delivering and execution is entirely a new game.
Government must weigh its pros and cons before taking a final call.
Shimla/Solan: In a shocking exposure of uniformed crime, a serving head constable of Haryana Police has been arrested along with an accomplice for smuggling 157 grams of chitta (heroin derivative) in Himachal Pradesh.
The arrest has rattled the local police force and unveiled a chilling modus operandi — using the khaki uniform as a shield to dodge security checkpoints and smuggle narcotics into the hill state.
The accused, identified as Pradeep Kumar, son of Mange Ram from Kalayat in Kaithal, Haryana, and his accomplice Mohit, son of Sushil Kumar, also from Kaithal, were arrested by Solan police near the double wall area following a tip-off.
The two were reportedly frequent suppliers of chitta to Shimla district, operating freely and fearlessly under the guise of law enforcement.
Shockingly, Pradeep Kumar, despite being a head constable himself, managed to cross multiple police checkpoints — including the crucial entry point at Parwanoo, without raising suspicion.
His strategy was simple yet brazen: don the police uniform to avoid scrutiny while ferrying the deadly contraband.
The interrogation revealed that the duo had initially travelled to Narkanda in Shimla district to offload the chitta.
However, failing to strike a profitable deal — with rates reportedly hovering around ₹6,000 per gram — they rerouted to Solan, hoping for better prospects.
Their gamble failed, as Solan police, acting swiftly on intelligence inputs, intercepted and apprehended them before they could peddle the drugs.
"The arrested head constable had been active in smuggling chitta for quite some time, primarily targeting the Shimla circuit. He cleverly used his uniform to pass through checkpoints without suspicion. We are probing their criminal history, and several more arrests are likely," the police official.
Both accused have been produced in court and are currently under a five-day police remand for further interrogation.
Sources suggest that the racket might have deeper links, potentially involving more insiders and suppliers from Haryana and Himachal Pradesh.
This arrest not only exposes the vulnerability of state borders to drug smuggling but also raises serious concerns about insider involvement within the law enforcement agencies.
As police continue to dig deeper, a larger network of narcotics trafficking could soon unravel.
With Himachal Pradesh increasingly becoming a target for drug traffickers, especially in tourist hotspots like Shimla and Solan, this case has sent ripples across the state, prompting demands for stricter vigilance at borders and a zero-tolerance policy against drug mafias — no matter the uniform.
HP Power Sector: Financial Troubles Linger as CM Vows to Strengthen HPSEBL
Shimla, April 7 — Even as the Himachal Pradesh government pushes for reforms in the power sector, the financial woes of the Himachal Pradesh State Electricity Board Limited (HPSEBL) continue to cast a long shadow.
In a high-level review meeting of the Energy Department chaired by Chief Minister Sukhvinder Singh Sukhu today, the pending arrears — primarily accrued from state-sponsored power subsidies — remained unaddressed.
Employees of HPSEBL, currently on deputation with the Himachal Pradesh Power Corporation Limited (HPPCL) and the Directorate of Energy, have now been given a choice: either opt for permanent absorption in their present organizations or return to HPSEBL. The deadline for this decision has been set for April 30.
Despite no major restructuring announcements for the energy sector following the government's recent decision to reclaim two projects from SJVN and one from NHPC, the Chief Minister reiterated the state’s commitment to bolstering HPSEBL.
“The state government will provide all possible support to ensure better services for the people,” Sukhu assured.
However, HPSEBL engineers argue that the government’s moves amount to mere internal restructuring, not genuine reforms.
"There are no real reforms happening — it's just shuffling within the departments," they contend, pointing out that critical policy overhauls and financial resolutions remain untouched.
Highlighting operational challenges, the CM emphasized large-scale recruitment to fill field vacancies, acknowledging the critical role of HPSEBL staff in maintaining electricity supply across the state. Vacant posts in the organization will be filled on priority to strengthen ground-level operations.
The performance of HPSEBL, however, remains under scrutiny. The 100 MW Uhl Stage-III project, plagued by a staggering 22-year delay and a costly penstock burst in May 2020, is finally ready for formal inauguration.
Thanks to an infusion of Rs 185 crore by the current government, the project has already generated 2.97 crore units of electricity. It is expected to yield Rs 200 crore annually, though the per-unit cost remains undisclosed.
The CM’s assurances come at a time when HPSEBL’s deepening financial crisis, coupled with unresolved subsidy arrears, continues to cloud the outlook for the state’s power sector.
Shimla: The investigation into the suspicious death of Himachal Pradesh Power Corporation Limited (HPPCL) Chief Engineer Vimal Negi has intensified, with police questioning suspended Director Deshraj for over six hours on Sunday.
This marks the first time the SIT (Special Investigation Team) has interrogated Deshraj, who, along with then-Managing Director Harikesh Meena, has been accused by Negi’s family of harassing the late engineer.
Police sources confirmed that Deshraj was grilled from 2 PM to 8 PM, focusing heavily on a phone call he made to Vimal Negi on the morning of March 10 — the day Negi went missing.
Following this call, Negi left Shimla and headed towards Bilaspur, never to return alive.
Investigators are probing the contents of that crucial phone conversation. Deshraj was also questioned based on internal records seized from the corporation and statements collected from HPPCL employees and officials.
The family alleges that senior corporation officials subjected Negi to relentless harassment and coercion, pressuring him to partake in wrongful practices.
Acting on a complaint filed by Negi’s wife, Kiran Negi, police have booked Deshraj, Harikesh Meena, and other officials under charges of abetment to suicide.
A Special Investigation Team, led by Shimla SP Sanjeev Kumar Gandhi, has been formed to carry out an in-depth probe.
“My husband did not drown — he was murdered,” Kiran Negi declared, making a chilling allegation that has sent shockwaves across the state’s power corridors.
“We trusted everyone, but justice eluded us at every step. Now, our only hope lies with the High Court,” she added, urging the judiciary to order a CBI investigation into her husband’s death.
As the SIT tightens its grip on the suspects, Harikesh Meena has also been summoned for questioning on Monday.
Meanwhile, all eyes are on the High Court, where the demand for a CBI probe is gaining momentum.
With serious accusations of institutional harassment and potential foul play, the case has turned into a litmus test for the state’s investigative machinery — and the family’s fight for justice is far from over.
Keylong: In Lahaul-Spiti’s Sissu Sissu of Himachal Pradesh, two tourists were swept away in the Chandra River — the body of a young man from Jharkhand has been recovered, while the search for the second tourist is still ongoing.
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