Himachal to allocate power projects on higher royalty, says CM Sukhu

Chief minister Sukhvinder Singh Sukhu ups the ante day after meeting Union power minister RK Singh on Shanan project tussle with Punjab

Upping the ante, chief minister Sukhvinder Singh Sukhu on Tuesday said that the Himachal Pradesh government would allocate power projects to companies only if the state gets a higher percentage of royalty. At present, the state gets 12% free power royalty share in the projects.

The lease of the 110-MW Shanan hydel project lease runs out March 2, 2024, but Punjab is firm on its claim over the project in Mandi district’s Jogindernagar town. The project was built in 1925 under a 99-year lease deed executed between Jogendra Sen Bahadur, the then ruler of Mandi state, and colonel BC Batty, the then chief engineer of the government of Punjab. (HT file photo)

“We don’t have many resources. Water is a precious resource that Himachal Pradesh has given to (public sector) companies, such as NHPC, NTPC and SJVNL. It is the state’s right to get a higher percentage of royalty in the projects,” Sukhu told reporters on the sidelines of the swearing-in ceremony of Himachal Pradesh high court chief justice MS Ramachandra Rao in Shimla.

Sukhu said the previous BJP government had deferred free power royalty by 12 years that was against the interest of the state. He said that he had met Union power minister RK Singh and taken up the issue. “I also raised the issue of handing over the Shanan power project in Mandi to Himachal Pradesh. Its lease is expiring soon and the Union minister assured me that he will inform me about the next step after studying the legal aspects,” Sukhu said.

The lease of the 110-MW Shanan hydel project lease runs out March 2, 2024, but Punjab is firm on its claim over the project in Mandi district’s Jogindernagar town. The project was built in 1925 under a 99-year lease deed executed between Jogendra Sen Bahadur, the then ruler of Mandi state, and colonel BC Batty, the then chief engineer of the government of Punjab. According to the agreement, Mandi state provided land for the project and the water of the Uhl, a tributary of the Beas river, in lieu of 500KW of free electricity. The 48-MW Stage-I project was opened on March 10, 1933. The Punjab government enhanced its capacity to 60MW in 1982 and later to 110 MW.

To raise stopping of NPS share with Centre

The Himachal Pradesh chief minister said that he was headed to the national capital where he and his team of officials would meet Union finance minister Nirmala Sitharaman. “Last year, the state’s loan limit was ₹14,500 crore, which the Centre has cut down by ₹5,000 crore. The Centre has stopped the matching grant of National Pension Scheme (NPS) share of ₹1,780 crore. We will raise these issues,” Sukhu said.

The Congress had swung the vote in the recent Himachal Pradesh assembly elections by promising to implement the Old Pension Scheme (OPS), which the state cabinet notified on May 5, putting a burden of ₹1,000 crore on the state exchequer in the 2023-24 fiscal. The state government had stopped depositing its contribution under NPS from April this year and now it has been decided that contribution of those who opt for NPS shall be continued to be deposited with the National Securities Depository Limited (NSDL).

The chief minister said he planned to meet Union minister of environment, forest and climate change Bhupender Yadav and seek relaxation in Forest Conservation Act (FCA) and Forests Rights Act (FRA) clearances so that developmental projects can be expedited.

Says NPA withdrawn for new recruits

Replying to a query on doctors going on a strike against the state government’s decision to withdraw their non-practising allowance (NPA), the chief minister said: “The issue has been blown out of proportion. For the first time, doctors who are getting NPA have gone on strike. They should have clarified the matter with the government before going on strike. The decision won’t affect those who already have the job.”

Sukhu said that the Association of Dental Doctors met him recently, seeking government recruitment for dentists. They were ready to forgo the NPA. It was after this that the government advertised 38 posts of dental doctors and the notification related to withdrawal of NPA was issued and it covered Ayush and allopathy doctors. “If allopathy doctors want the government to restore the NPA while making new recruitments, we will definitely think on it,” he said.