Himachal’s Bid for Increased Power Royalty Rejected by Union Ministry
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Shimla, Dec 17: The Union Ministry of Power has firmly rejected Himachal Pradesh’s proposal to enhance the free power royalty charged from central hydropower projects. Responding to a query posed by State Congress Chief and Mandi MP Pratibha Singh during the ongoing Lok Sabha winter session, the Power Ministry stated that the state’s proposal was dismissed as it surpassed the maximum free power royalty limit of 12% permitted under the Hydro Power Policy of 2008 for the respective home states.
The Himachal government had sought to elevate the power royalty from the existing 12% to 30% for central hydro projects. However, the ministry underscored that the Hydro Power Policy permits a maximum of 12% free power royalty.
The ministry’s response clarified, “A proposal from the Himachal government was received to increase royalty in terms of free power from 12% to 30% for the Nathpa Jhakri (1500 MW) and Rampur (400 MW) hydroelectric projects of Satluj Jal Vidyut Nigam Limited (SJVNL). Nevertheless, the proposal was not accepted.”
In response to another question from Mandi MP Pratibha Singh, the Power Ministry affirmed that it had not received any proposal from the Himachal government for the release of Rs 4,000 crore from the Bhakra Beas Management Board (BBMB). The state government had announced a plan in May to raise free power royalty for private projects, proposing an increase to 15% for the initial 12 years, 20% for the subsequent 18 years, and 30% for the following 10 years from the current rates of 12%, 18%, and 30%, respectively.
