Union Government refuses to hike hydropower royalty of Himachal

The proposal by the Himachal Pradesh government to increase the royalty for free power from central hydro-power projects has been rejected by the Union Ministry of Power. The ministry cited that the proposal was declined as it surpassed the permissible maximum of 12% as outlined in the Hydro Power Policy of 2008. The government’s request to elevate the free power royalty for private projects was also turned down. Furthermore, the power ministry clarified that no proposal has been received from the Himachal government requesting the release of Rs 4,000 crore from the Bhakra Beas Management Board (BBMB).

In response to a query posed by the state Congress chief and Mandi MP Pratibha Singh during the ongoing winter session of the Lok Sabha, the power ministry conveyed that the Himachal government’s proposal has been rejected. The ministry explained that the Hydro Power Policy of 2008 permits a maximum free power royalty of 12% to the respective home states from hydroelectric projects. The Himachal government had put forth a proposal to increase the current 12% power royalty to 30% from central hydro projects.

The response further clarified, “The power ministry has received a proposal from the Himachal government, suggesting an increase in royalty for free power from 12% to 30% from the Nathpa Jhakri (1500 MW) and Rampur (400 MW) hydroelectric projects of Satluj Jal Vidyut Nigam Limited (SJVNL). Nevertheless, this proposal was not accepted.”