Himachal Pradesh has inked a Memorandum of Understanding (MoU) with the Government of Telangana for establishing 400 MW Seli and 120 MW Miar Hydro Electric Power Projects in Lahaul-Spiti district. This is the first ever collaboration of its kind in the history of the State marking a significant milestone in the State's efforts to harness its vast hydro power potential.
The MoUs were signed by Secretary Power Rakesh Kanwar on behalf of the Himachal Pradesh Government and Principal Secretary of Power Sandeep Kumar Sultania on behalf of Telangana Government in the august presence of Chief Minister Thakur Sukhvinder Singh Sukhu and Deputy Chief Minister of Telangana Bhatti Vikramarka Mallu at Shimla today.
Both the projects are expected to be set up with an estimated cost of Rs. 6200 crore on the bank of Chenab river and are set to generate about 5000 direct and indirect employment to the youth of the State. As per the agreement, Telangana Government has paid Rs. 26 crore as upfront premium and after the commissioning of both these projects, Himachal Pradesh will receive 12 percent, 18 percent and 30 percent free power for the first 12 years, next 18 years and remaining 10 years respectively under the new Energy Policy of the State Government.
After 40 years, the Government of Telangana would transfer both the projects to Himachal Pradesh. Additionally, the Telangana Government would contribute 1.5 percent of cost of projects towards Local Area Development Fund (LADF) and provide additional one percent free power for LADF after commissioning.
The affected families of these projects will also receive monetary benefits equivalent to 100 units per month for a period of 10 years. On the occasion, Chief Minister Thakur Sukhvinder Singh Sukhu welcomed the Deputy Chief Minister of Telangana Bhatti Vikramarka Mallu to Himachal Pradesh and said that this collaboration marks a new era of inter-state cooperation in the renewable energy sector.
He also invited the Government of Telangana to explore further partnership in power banking or trading. He said, "Our Government is committed to protecting the State's resources while ensuring that hydro power projects benefit the people of the State.
We will extend full cooperation to the government of Telangana to establish both the projects and look forward to the commencement of construction earliest. These agreements are win-win situation for both the States."
The Chief Minister said that the present State Government would not allow the exploitation of the resources of the State. He said that the State Government was recognizing water resources of the State as its wealth and it was undertaking radical reforms in the power sector to make Himachal Pradesh a self reliant State.
He said that while the State has harnessed 11500 MW renewable energy so far, much of it has benefitted the Central Public Sector Undertakings. He said that the present Government is determined to change this and ensure the State's water resources are utilized for the economic growth of the people of the State.
Deputy Chief Minister of Telangana Sh. Mallu stated that Telangana Government was committed towards ensuring energy security for both the States keeping in view its fast growing demand. In line with Telangana Clean and Green Energy Policy, 2025, this MoU reflects our commitment to diversifying our energy portfolio while ensuring environment sustainability.
He said, "By partnering with Himachal Pradesh, we are taking a significant step towards securing cleaner, greener and more reliable power for our future." Deputy Chief Minister said that Telangana Government has been actively working towards increasing its renewable energy share and this agreement highlights the importance of inter-state cooperation in energy sector.
Health and Family Welfare Minister Dr. (Col.) Dhani Ram Shandil, Principal Advisor Media to Chief Minister Naresh Chauhan, Chief Managing Director Telangana State Southern Power Distribution Company Limited (TGSPDCL) Musharraf Faruqui, Director Energy Rakesh Prajapati, Special Secretary Power Arindam Chaudhary and other senior officers of both the States were present on the occasion.