Kishau project to generate Rs. 1,200 crore annually for Himachal Pradesh: Chief Minister

SHIMLA 15 September, 2026

· Affected families to receive adequate compensation

· Himachal to continue its fight for water rights and interests in the energy sector

· Himachal must receive fair value for its ecological services: CM

Chief Minister Thakur Sukhvinder Singh Sukhu, while interacting informally with the media in New Delhi today following the signing of the Memorandum of Understanding (MoU) with various states for the Kishau Power Project, said that the project would bring significant economic benefits to Himachal Pradesh.

He said that the biggest benefit for Himachal Pradesh under the agreement is that the state would receive 211 MW of electricity generated from the Kishau Dam without having to bear the cost of generation. The expenditure, which would have run into thousands of crores of rupees, will now be borne by the states that utilise the project’s water. He said the state government had accorded the highest priority to Himachal Pradesh’s interests during the negotiations and after prolonged discussions, succeeded in securing important decisions in favour of the state.

Sukhu said that as per the earlier calculations, the Kishau Power Project was expected to generate an annual income of around Rs. 600 crore for Himachal Pradesh. However, according to the current estimates, the state is likely to earn around Rs. 1,200 crore annually once the project is completed. This will strengthen the state’s economy, and the benefits will ultimately reach the people of Himachal Pradesh.

The Chief Minister said that this was a significant achievement in the history of Himachal Pradesh. The state’s water resources have traditionally been described as “flowing gold” and Himachal Pradesh is now moving towards deriving greater economic benefits from its valuable water resources.

Thakur Sukhvinder Singh Sukhu said that under the earlier agreement for the Kishau Project, Himachal Pradesh was required to bear the cost of the electricity generated by the project. The present state government did not accept this condition and continued negotiations continuously for three years to safeguard the state’s rights. As a result, the cost of the electricity generated by the project will now be borne by the states that utilise its water.

The Chief Minister said that families affected by the Kishau Project would be provided adequate compensation. He said that the number of villages affected in Himachal Pradesh would be comparatively smaller, while a larger number of villages would be affected in Uttarakhand. The affected people would be compensated in accordance with the applicable provisions relating to land acquisition.