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Himachal Pradesh Seeks Equitable Share of Hydropower Revenue from BBMB Projects

By Gurleen Bajwa , 24 June 2025
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Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu has called upon Prime Minister Narendra Modi to rectify what he describes as a historical injustice by allocating 12% free power from all Bhakra Beas Management Board (BBMB) projects to the state. Despite contributing significantly to the hydropower potential harnessed by BBMB, Himachal Pradesh has received no such benefit. In a series of letters to central leaders and his Haryana counterpart, Sukhu also advocated for additional power entitlements and fair representation in the BBMB board. These interventions underscore the state's growing demand for energy equity and recognition of its resource contributions.

Himachal’s Long-Standing Grievance Over BBMB Power Allocation

Himachal Pradesh has once again raised the issue of receiving its fair share from the Bhakra Beas Management Board’s hydropower output. In a strongly worded letter addressed to Prime Minister Narendra Modi, Chief Minister Thakur Sukhvinder Singh Sukhu emphasized that while hydropower projects approved by the state government mandate the provision of free power to Himachal, BBMB projects remain exempt from such obligations.

The chief minister highlighted that vast tracts of Himachal’s hydropower-rich terrain were utilized for BBMB infrastructure without the state receiving any reciprocal benefit in the form of free electricity. He has formally urged the central government to allocate 12% free power from all BBMB ventures to Himachal Pradesh — a move that, he asserted, would correct a long-standing imbalance.

Call for Additional Free Power from Nathpa Jhakri Project

In a separate communication to Union Power Minister Manohar Lal Khattar, the chief minister requested that Satluj Jal Vidyut Nigam Limited (SJVNL) be directed to provide an additional 1% of free power from the Nathpa Jhakri Power Project. This would be designated for the Local Area Development Fund, intended to benefit communities directly impacted by the project’s construction and operations.

The request follows the precedent set by the Rampur Power Project, also under SJVNL, where a similar provision has already been implemented. Sukhu argued that this measure would ensure a more equitable distribution of resources and support socio-economic development in the project-affected regions.

Demand for Representation in BBMB Governing Structure

Another issue raised by the Himachal chief minister relates to governance and representation. Despite being a key stakeholder in the hydropower capacity utilized by BBMB, Himachal Pradesh currently lacks representation as a full-time member of the board.

In his letter to the Union power minister, Sukhu demanded that the state be granted due representation, reinforcing the need for federal fairness in institutions managing shared national resources. He stressed that such inclusion would help address the state’s interests more effectively in future policy and operational decisions.

Energy Arrears Dispute with Haryana and Punjab

Chief Minister Sukhu also communicated with Haryana Chief Minister Nayab Singh Saini, requesting that Haryana provide written consent to clear its share of energy arrears from BBMB projects. These arrears, spanning from November 1966 to October 2011, total 13,066 million units — of which Himachal Pradesh is entitled to a share.

Under the proposed resolution, this energy could be repaid over a 15-year period at a rate of 871 million units per year, with 6% interest. Sukhu highlighted that an agreement on this front would unlock progress on several stalled infrastructure projects beneficial to both states, particularly those in the energy and water sectors.

Broader Implications for Federal Resource Allocation

Himachal Pradesh’s assertions raise broader questions about equitable resource sharing among Indian states, particularly those rich in natural resources but with limited political leverage. As the country’s energy mix continues to shift towards cleaner sources like hydropower, the demand for just compensation for resource-contributing states is likely to gain traction.

The chief minister’s proactive engagement with both the Centre and neighboring states reflects an increasingly assertive stance by hill states like Himachal Pradesh, which are crucial to India’s renewable energy ambitions but often remain underrepresented in national decision-making platforms.

Conclusion:
Chief Minister Sukhu’s coordinated push to secure free power from BBMB and representation in its governance structure marks a decisive moment in Himachal Pradesh’s long-standing campaign for hydropower equity. If the Centre and other stakeholders heed these calls, it could pave the way for a new model of federal cooperation and resource justice—one that acknowledges and compensates states not merely for their geographical location, but for their contribution to India’s energy infrastructure.

 

 

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