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Himachal Cracks Down on Delayed Hydro Projects

Himachal Pradesh government has ordered the cancellation of stalled hydropower projects that have failed to take off due to developer inaction. Chairing a high-level meeting with the state’s Power Department, the Chief Minister issued firm directions to initiate notices against developers who have not progressed on their assigned hydroelectric sites for prolonged periods.

Hydropower remains the backbone of Himachal Pradesh’s economy, contributing significantly to both state revenues and the broader energy security of northern India. However, several projects have remained dormant, leading to revenue losses and stalling the state’s sustainable growth trajectory. The Chief Minister underlined that such inaction cannot be allowed to persist at a time when clean energy is central to India’s decarbonisation and infrastructure push.

In a significant step, the state has decided to take back three previously allotted projects from a major public sector enterprise — the 382 MW Sunni project, the 210 MW Luhri Stage-I project, and the 66 MW Dhaulasidh project. The move underscores the government’s resolve to prioritise developers committed to timely execution and community benefit.The Chief Minister also reaffirmed that Himachal Pradesh will not progress on upcoming hydro infrastructure like the Kishau and Renuka Dam projects unless neighbouring states uphold their pending commitments related to the Bhakra Beas Management Board (BBMB). These commitments, which include financial settlements and resource-sharing arrangements, have remained unresolved for years.

During the meeting, senior officials briefed the Chief Minister on the potential of developing pumped storage capacity—4,403 MW at Bhakra Dam and 8,700 MW at Kol Dam. The Energy Department was directed to proactively lead these developments, which could elevate the state’s renewable generation capacity while providing balancing power for the grid during peak demand.

In parallel, the Chief Minister also reviewed progress on the state’s solar and decentralised energy projects. He instructed the Himachal Pradesh State Electricity Board to commission the Kaza Solar Power Project by August 2025. In addition, a 1 MW solar plant with battery storage in Dhanwas, located in the snow-bound Pangi valley of Chamba, is slated for completion by December 2025. This will ensure uninterrupted power supply to 19 remote panchayats, even during harsh winters.The state’s flagship Green Panchayat scheme was also discussed, with clear orders to expedite execution timelines. Meanwhile, the 450 MW Shong Tong Hydropower Project, currently under construction, was asked to adhere strictly to its schedule.

To support expanding power infrastructure, the government has cleared the establishment of five new 66 KV substations by HPSEBL and ten high-capacity substations (132 KV and 220 KV) by the state’s power transmission company, following the regulatory mandates of the State Electricity Regulatory Commission.

The push for timely execution, backed by regulatory enforcement and public accountability, signals Himachal Pradesh’s pivot toward a clean energy future grounded in performance and regional equity. The government’s crackdown on non-serious developers sends a clear message — public resources and strategic assets cannot be held in limbo by speculative investment behaviour.

Also Read : Mumbai drinking water reserve at 26.84 percent

Himachal Cracks Down on Delayed Hydro Projects
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