Shimla, April 5 — In a move that has sent ripples through both state and central corridors of power, the Sukhvinder Singh Sukhu-led Himachal Pradesh government has decided to take over five major hydroelectric projects from Central Public Sector Undertakings (CPSUs) SJVN and NHPC — a decision many fear could ignite a fresh confrontation between the hill state and the Centre, with long-term legal and financial consequences.
The Cabinet gave its nod to acquire the 382 MW Sunni, 210 MW Luhri Stage-I, and 66 MW Dhaulasidh projects from SJVN, and the 500 MW Dugar and 180 MW Baira Suil projects from NHPC.
To facilitate this, an independent evaluator and an administrator will be appointed to assess the actual investments already sunk into these projects.
However, this assertive move by the Sukhu government is being widely seen as a pressure tactic aimed at forcing SJVN and NHPC to renegotiate terms with the state under the new Himachal power policy.
The government has been pleading with both companies to revise their agreements to align with its updated policy framework, which is seen as an attempt to reclaim greater control over hydropower assets and maximise state revenue.
The message from the Chief Minister is ckear: either play by the state’s new rules, or risk losing these lucrative projects.
Yet, this hardline stance could backfire. SJVN and NHPC have already ramped up work on these projects, and any abrupt move by the state to take over could drag Himachal into protracted legal battles.
Observers note that these projects are protected under legally binding agreements, and any unilateral change is bound to meet stiff resistance in court.
Notably, the state government is already embroiled in a legal tussle over its controversial decision to levy a water cess on hydropower projects, a case that has been challenged in the courts by various stakeholders, including the Centre and neighbouring states.
Critics argue that the move smacks of political brinkmanship rather than prudent governance.
“This could turn into a misadventure. There is no private player or state entity that matches the technical depth of SJVN and NHPC in hydroelectric power.
Himachal risks jeopardising both revenue and reputation,” cautioned a senior bureaucrat.
SJVN, a CPSU of repute with its headquarters in Shimla, is a particularly sensitive target.
The state owns a 25% equity stake in the company, and without spending a rupee, has been drawing healthy dividends and revenue from its projects.
By antagonising SJVN, Sukhu risks not only losing a reliable partner but also igniting local backlash, as the company provides employment and economic stability in the region.
The larger question looms: is this just a high-stakes game of pressure tactics, or does Sukhu genuinely intend to wrest control of these projects?
Whatever the answer, what’s certain is that this power play could escalate into an expensive and bruising legal saga for the state.
As one political observer put it bluntly, “Sukhu’s venture, with no seasoned hand to guide him, risks becoming a costly misadventure that Himachal can scarcely afford.”
SIDEBAR
The Projects at Stake
SJVN Projects:
Sunni: 382 MW
Luhri Stage-I: 210 MW
Dhaulasidh: 66 MW
NHPC Projects:
Dugar: 500 MW
Baira Suil: 180 MW
What the State Wants:
Revision of agreements under the new Himachal Power Policy
Greater revenue share and control over power assets
Retention of rights over state water resources (pending water cess litigation)
What’s at Risk:
Protracted legal disputes with CPSUs
Delays and cost escalations in hydropower projects
Strained state-Centre relations
Potential loss of SJVN dividends and revenue flow.