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.