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Himachal: Reworking power tariffs, eyeing water sale to boost revenue, says Sukhu

The state is sexamining the commercial value of its water resources and working on a mechanism to fix a rate for water supplied from its rivers, says chief minister

Published on: Sep 22, 2026, 07:52:20 IST
By , Shimla
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(Blurb) Cabinet expansion, rejig on cards, he says

Chief minister Sukhvinder Singh Sukhu addressing mediapersons in Shimla on Monday.
Chief minister Sukhvinder Singh Sukhu addressing mediapersons in Shimla on Monday.

Himachal Pradesh is reworking the rates at which it sells surplus power to other states and exploring ways to monetise its water resources as part of a broader strategy to make the state financially self-reliant. Chief minister Sukhvinder Singh Sukhu said this while talking to Hindustan Times after inaugurating his new office on Monday.

He said the state had begun negotiating higher power tariffs with consuming states, starting with Kerala and Tamil Nadu, while Rajasthan was also purchasing electricity from Himachal Pradesh. Tamil Nadu has agreed to purchase power at around 13.50 per unit up to March 31, while discussions are underway with Kerala over a rate of 14 to 14.50 per unit during peak hours.

The CM said Himachal had increased annual revenue from power sales from about 1,900 crore to more than 2,400 crore after creating a separate energy management mechanism. The state is also looking at supplying power during periods of higher demand and prices, while cheaper daytime power, particularly with rising solar generation, is being assessed separately. “The state is expected to generate 3,100 crore to 3,200 crore through improved power management this year,” he said.

Sukhu also referred to the state’s entitlement to 12% free power from hydropower projects and said the government had decided to retain greater control over it instead of allowing the electricity board to independently dispose of the power.

The state is simultaneously examining the commercial value of its water resources and working on a mechanism to fix a rate for water supplied from its rivers. It is considering supplying water outside Himachal Pradesh, including Panchkula, through a proposed tunnel from the Sutlej, subject to cost assessment.

“Himachal needs 7,000 crore to become self-reliant. Through additional revenue streams and economic measures, the state can become financially surplus by 2032,” he said.

The CM also referred to outstanding Bhakra Beas Management Board (BBMB) dues and said Himachal expected to receive around 500 crore annually after the issue is resolved.

The cabinet will be expanded soon, Sukhu said, adding that changes would also be made to the allocation of portfolios.

Regarding the new secretariat building, Sukhu said it would address space and parking constraints. Responding to Opposition criticism that the project was wasteful expenditure, he said, “The Opposition has nothing to say. They call this wasteful expenditure, whereas they built buildings worth 1,000 crore. I have only built the CM office.”

Pensioners to get up to 30% of arrears

CM Sukhu said Class-III pensioners would receive 30% of their pension arrears, while Class-I and Class-II pensioners would receive 15% of the arrears in October. This is for those who retired between January 1, 2016 and December 31, 2022, he said.

Addressing a meeting with the Himachal Pradesh Pensioners’ Joint Front, Sukhu said directions had been issued to all departments to clear pending medical reimbursement claims of pensioners. He added that the arrears of all pensioners above 65 years of age had already been cleared by the government.

1,000 pocket money for widows’ children

Sukhu announced that children aged 19 to 27 years covered under the Indira Gandhi Sukh Shiksha Yojana would also be provided 1,000 per month as pocket money. Chairing a meeting of the women and child development department, he issued directions for developing an integrated portal for all departmental schemes to ensure seamless access to benefits and eliminate any inconvenience faced by eligible persons.

  • Shailee Dogra
    ABOUT THE AUTHOR
    Shailee Dogra

    Shailee Dogra is a Principal Correspondent covering Himachal Pradesh. While working with Hindustan Times since February 2006, her journalism experience spans across covering crime, court, Mohali, Panchkula, in addition to covering the Punjab and Haryana High Court. Reporting for Himachal Bureau, she covers politics, security, public policy, finance, industries and commerce, rural development, legal affairs, environment. Her focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace, affairs related to tribal areas of the state.Read More