Himachal Pradesh and Telangana have entered a significant agreement aimed at strengthening India’s renewable energy sector. The Himachal government has signed a Memorandum of Understanding (MoU) with the Telangana government to develop two major hydroelectric projects: the 400 MW Seli and the 120 MW Miyad hydropower projects, both located in the Lahaul-Spiti district of Himachal Pradesh.
The MoU was signed in the presence of Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu and Telangana Deputy Chief Minister Mallu Bhatti Vikramarka. The projects will be developed on a build-own-operate-transfer (BOT) model, ensuring long-term benefits for both states.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu emphasized that this agreement marks the first step towards making the state self-reliant while harnessing its natural resources for the benefit of its people. Speaking to the media, Sukhu pointed out that when his government took office two years ago, it identified the state’s natural resources as its greatest asset. He compared the past and present approach, saying, “While previous governments signed agreements based on the conditions of their time, our goal is to utilize these resources for the direct benefit of the people.”
Sukhu also highlighted the decline of the Himachal Pradesh State Electricity Board, which had once been a leader in the industry but is now ranked 47th, while central government public sector units like NTPC and SJVN have flourished. “These companies have built a ₹67,000 crore empire using our water, yet our state’s total annual budget is only ₹58,000 crore,” he said. He further added, “We will not allow the exploitation of our state’s resources. This MoU is a step towards making Himachal self-reliant. These projects will be handed back to the state after 40 years, and we will receive upfront premiums.”
Sukhu stressed that Himachal’s policies would be strictly enforced, stating that only companies adhering to the state’s guidelines would be allowed to operate. “We will reclaim projects from any company that doesn’t meet our conditions. Over the next year, we will announce various projects under new policies,” he said. He also encouraged Telangana officials to establish an office in Himachal to speed up the process and questioned why the state should continue offering projects to central government public sector units that provide only a 12% royalty, often funded indirectly by consumers.
Sukhu reiterated that water and hydropower are crucial to Himachal’s future and vowed to ensure that these resources benefit the state and its people, rather than being exploited.
Telangana’s Deputy Chief Minister Mallu Bhatti Vikramarka expressed his excitement about the collaboration and commended Himachal’s commitment to renewable energy. “On behalf of the Telangana government and its people, I extend my congratulations to Himachal Pradesh. This MoU is not just about hydropower projects; it signifies mutual cooperation and strengthens our federal system. Chief Minister Sukhu has always prioritized renewable energy, and today, we take another step in that direction,” he said.
Vikramarka also underscored the role of hydropower in Telangana’s energy strategy for 2025, noting that it is a reliable source of energy for future generations. “This agreement shows how two geographically distant states can come together to achieve energy self-reliance. I thank Chief Minister Sukhu for his commitment to reforming and addressing energy challenges. This is the beginning of a prosperous future for Telangana,” he added.
This agreement between Himachal Pradesh and Telangana highlights a growing trend of state-level cooperation in renewable energy development. It sets a valuable example of how states can leverage each other’s strengths—Himachal’s abundant hydropower resources and Telangana’s growing industrial demand—to create a sustainable energy future.
As the projects progress, this partnership is expected to drive investments, create job opportunities, and strengthen the role of renewable energy in India’s growth. If successful, this model could inspire similar agreements between other states, fostering a more self-sufficient and resilient energy ecosystem across the country.
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