Shimla (Himachal Pradesh), March 29
The Himachal Pradesh and Telangana states have entered into a crucial agreement that promises to strengthen India’s renewable energy sector.
The Himachal government has signed a Memorandum of Understanding (MoU) with the Telangana government for the construction of two major hydroelectric projects, the 400 MW Seli and 120 MW Miyad hydropower projects in the Lahaul-Spiti district of the state.
The MoU was signed in the presence of the Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu and the Telangana Deputy Chief Minister Mallu Bhatti Vikramarka. These projects will be developed on a build-own-operate-transfer (BOT) basis, ensuring long-term benefits for both states.
The Chief Minister of Himachal Pradesh, Sukhvinder Singh Sukhu, said that this is a first step towards a self-reliant state and Harnessing Himachal’s Wealth for Its People.
While addressing the media, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu emphasized the importance of utilizing the state’s natural resources for its own development.
“Two years ago, when we formed the government, we identified our state’s greatest wealth as our natural resources. Previous governments signed agreements for hydropower projects based on the circumstances of their time. However, our goal is to generate energy using these resources for the direct benefit of the people,” he said.
“The Himachal Pradesh State Electricity Board, once a leading entity, has now slipped to the 47th position, while central government public sector units like NTPC and SJVN have flourished. These companies have built a Rs67,000 crore empire using our water, yet our state’s total annual budget remains only Rs58,000 crore,” Sukhu said.
“We have taken a policy decision that we will not allow the exploitation of our state’s resources. Significant changes have been introduced, and this MoU marks the first step towards a self-reliant Himachal. These projects will be returned to the state after 40 years, and we will also receive upfront premiums. By partnering with the Telangana government, we ensure benefits for both states. Himachal earns revenue, and Telangana secures renewable energy for its industries, including the IT sector,” he further added.
Sukhu also issued a strong message to potential investors, stating that only those entities that adhere to Himachal’s policies will be allowed to operate.
“We will reclaim projects from any enterprise that does not meet our conditions. Our focus is on self-sufficiency, and over the next year, we will advertise various projects under new policies. I extend my gratitude to Telangana’s Deputy CM and officials and encourage them to establish their office in Himachal to expedite the process. Additionally, if other states show interest in our projects, why should we continue offering them to central government public sector units that only provide 12% royalties, often indirectly funded by consumers?” Sukhu added further.
He highlighted the importance of water and hydropower as Himachal’s lifeline, vowing that the government will ensure the state and its people benefit from these resources rather than allowing their exploitation.
Speaking at the event, Deputy Chief Minister of Telangana Mallu Bhatti Vikramarka expressed his enthusiasm for the collaboration and praised the Himachal government’s commitment to renewable energy.
“On behalf of the Telangana government and its people, I extend my greetings and congratulations to Himachal Pradesh. This MoU is not just about hydro projects; it represents mutual cooperation and the strengthening of our federal system. Chief Minister Sukhu has always prioritized renewable energy, and today, we take another step in that direction.” Mallu Said
He emphasized the role of hydropower in Telangana’s 2025 energy strategy.
“Hydropower is a reliable and essential source of energy for future generations. This agreement demonstrates how two geographically distant states can come together to achieve self-reliance in the energy sector. I express my sincere gratitude to Chief Minister Sukhu for his commitment to reforming and resolving energy challenges. This marks the beginning of a new chapter in Telangana’s prosperous future,” he said.
The agreement between Himachal Pradesh and Telangana signifies a growing trend of state-level cooperation in renewable and reliable energy development. It sets a precedent for how states can leverage each other’s strengths- Himachal’s abundant hydropower potential and Telangana’s growing industrial demand- to create a sustainable energy future.
As the implementation begins, this partnership is expected to boost investments, create jobs, and ensure that renewable energy plays a more significant role in India’s progress. If successful, this model could pave the way for similar agreements between other states, fostering a more self-sufficient and resilient energy ecosystem in India.
