- 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.
Sh. 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.
The Chief Minister said that water is going to become an increasingly important and valuable resource in the years ahead. Himachal Pradesh is continuously and firmly pursuing its rights over its water resources.
He said that, besides issues related to the Bhakra Beas Management Board (BBMB), the Shanan Power Project is also an important matter for the state government. He said that large public sector undertakings are benefiting from around 14,000 MW of hydropower and renewable energy potential in Himachal Pradesh, while the state currently receives 12 per cent free power royalty and one per cent under the local area development fund.
The Chief Minister said that the state government’s demand is that once a power project becomes free from cost after 12 years, Himachal Pradesh should receive 30 per cent free power royalty during the period from the 12th to the 30th year. Thereafter, upon completion of 40 years, the project should be transferred to the state government. If any organization wishes to continue operating the project even after 40 years, Himachal Pradesh should receive 50 per cent free power royalty.
He said that large public sector companies were becoming economically stronger by exploiting Himachal Pradesh’s water resources, while the state was not receiving benefits commensurate with the value of its natural resources. The state government is continuously working to secure appropriate rights and benefits from its water resources.
The Chief Minister said that Himachal Pradesh provides ecological services worth around Rs. 90,000 crore to the country every year. These include clean air, conservation of glaciers and ensuring water availability for the country’s rivers. At the same time, the state suffers economic losses running into thousands of crores of rupees every year due to natural disasters.
Sh. Sukhu said that institutions and companies benefiting from Himachal Pradesh’s natural wealth should provide the state with an appropriate economic return. The state government, he added, would continue to pursue its rights in this regard as well.
The Chief Minister said that the participation of both Himachal Pradesh and Uttarakhand had been ensured in the Kishau Project. Both states would have equal representation, with 50 per cent of the employees from each state. He expressed hope that the work on the project would be completed at the earliest.
