Shimla (Himachal Pradesh) [India], September 22 (ANI): Himachal Pradesh is reworking its power-selling mechanism and exploring ways to monetise its water resources as part of a broader strategy to generate additional revenue and make the state financially self-reliant, Chief Minister Sukhvinder Singh Sukhu said.
Speaking during an informal discussion with reporters after inaugurating his new office on Monday, Sukhu said the state had moved away from the traditional practice of power banking with neighbouring states and was now exploring direct sale of surplus hydropower in the open market to secure better returns.
He said Himachal had already started negotiating higher tariffs with power-consuming states, beginning with Keralam and Tamil Nadu, while Rajasthan was also purchasing electricity from the state.
“We are paying more attention to selling electricity. We have corrected the loopholes in the system and are now managing our free power separately,” Sukhu said.
The Chief Minister said annual revenue from the state's free power entitlement had increased from around Rs 1,900 crore to more than Rs 2,400 crore after a separate energy management mechanism was put in place.
He said the state was negotiating to sell electricity at higher rates during peak-demand hours while separately assessing the economics of daytime power sales.
According to Sukhu, Tamil Nadu had agreed to purchase power at around Rs 13.50 per unit up to March 31, while Himachal was discussing a rate of around Rs 14-14.50 per unit with Keralam for peak-hour supply.
“Electricity is a short commodity. If they need it during peak hours, we can sell it at a higher rate,” he said.
The state is also examining arrangements under which electricity could be supplied during periods of high demand and prices, while cheaper daytime power, particularly amid increasing solar generation, would be assessed separately.
Sukhu said improved power management was expected to generate around Rs 3,100-3,200 crore for Himachal Pradesh this year and help bridge gaps in the state's finances.
The Chief Minister said Himachal had a 12 per cent free power entitlement from hydropower projects and that the government had decided to retain greater control over this electricity instead of leaving its disposal entirely to the state electricity board.
“The 12 per cent free power that belongs to us should remain with us. Earlier, the electricity board used to sell it. We have now created a separate energy management system,” Sukhu said.
He said the government was simultaneously working on a mechanism to determine the commercial value of water supplied from rivers in the state.
“We are now fixing the rate of water. From now onwards, the water that is sold will have a fixed rate,” he said.
Sukhu said Himachal was also examining the possibility of supplying water outside the state, including to Panchkula, through a proposed tunnel system from the Sutlej, subject to a detailed cost assessment.
“We will first undertake the cost valuation. Where there is a requirement for water, we can supply it through pipelines or tunnels,” he said.
“We will fix the rate of our water. If we have water and there is a requirement elsewhere, why should we not sell it?” the Chief Minister said.
On proposals for diversion and channelisation of rivers, Sukhu said water-resource management was an area in which the state had powers and that the government was examining ways to utilise its water resources more effectively.
Sukhu said the broader objective of the government's revenue measures was to make Himachal Pradesh financially self-reliant.
“We need Rs 7,000 crore to become self-reliant. We are not saying that we are fighting a battle for Rs 7,000 crore. Once we become a self-reliant state, we will become surplus by 2032,” he said.
The Chief Minister also referred to outstanding dues related to the Bhakra Beas Management Board (BBMB), saying Himachal expected to receive around Rs 500 crore annually after resolution of the issue.
He said Haryana and the Centre had filed affidavits in connection with the Kishau-related agreement, while Punjab was yet to file its affidavit and the matter remained pending before the Supreme Court.
“BBMB arrears will come to us. The Supreme Court has already passed the decree relating to BBMB, and around Rs 500 crore a year will come to Himachal,” Sukhu said.
He said the government was also pursuing the long-pending issue concerning the Shanan power project.
On a possible expansion and reshuffle of his Cabinet, Sukhu said the exercise would take place soon and indicated that changes in the allocation of portfolios were also on the cards.
“There is no doubt that the Cabinet will be expanded soon. Reshuffle can happen at any time,” he said.
The Chief Minister said there would be both induction of new ministers and changes in departmental responsibilities, but declined to disclose further details. (ANI)
Himachal reworks power, water revenue model to become financially self-reliant by 2032: CM Sukhu
