MOU Signed Between Telangana and Himachal Pradesh Governments for Power Projects in Lahaul-Spiti
CM Sukhu signing MOU with Telangana government
Shimla, March 29, 2025: A significant milestone in India’s power sector has been achieved with the signing of a Memorandum of Understanding (MoU) between the Telangana government and the Himachal Pradesh government. This agreement paves the way for the development of two major hydroelectric projects in the rugged and picturesque region of Lahaul-Spiti, Himachal Pradesh. The projects, with a combined capacity of 520 MW, will be executed by the Telangana government and are set to transform the energy landscape in both Himachal Pradesh and Telangana.
The two projects – the 400 MW Seli Hydroelectric Project and the 120 MW Miyar Hydroelectric Project – will be constructed on a Build, Operate, and Transfer (BOT) basis. This means that the Telangana government will be responsible for the construction, operation, and maintenance of the power plants for a specified period before handing them over to the Himachal Pradesh government. The agreement, which was signed in the presence of Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu and Telangana Deputy Chief Minister Bhatti Vikramarka Mallu, marks a new chapter in collaborative efforts between the two states to harness the potential of renewable energy resources.
The Terms of the Agreement
The MoU outlines a comprehensive framework for the successful implementation of the hydroelectric projects. One of the key highlights is the provision of free electricity to Himachal Pradesh as a part of the agreement. Over the next 40 years, the Himachal government will receive significant benefits from the power generated. According to the terms of the deal, Himachal Pradesh will receive 12 percent of the electricity produced by the projects in the first 12 years. This percentage will increase to 18 percent during the next 18 years, and then to 30 percent during the final 10 years of the agreement. At the end of the 40-year term, the projects will be transferred back to the Himachal government, ensuring a long-term supply of green energy for the region.
Chief Minister Sukhwinder Singh Sukhu emphasized that the Himachal government would ensure that only those projects that comply with the set conditions would be allowed to operate. “If any project does not meet our conditions, the government will take it under its control,” said Sukhu during a press conference following the signing ceremony. He also mentioned that Telangana has already paid an advance of 28 crore INR to Himachal Pradesh for the projects, which indicates a strong financial commitment to the successful completion of the initiatives.
The Geographical and Strategic Importance of the Projects
The Lahaul-Spiti region, known for its challenging terrain and harsh climatic conditions, presents unique challenges for the development of large-scale power projects. However, this region is also home to some of the most significant water resources in the country, making it ideal for hydroelectric power generation. The successful completion of these projects is expected to provide a substantial boost to the energy infrastructure in the region, benefiting both the local communities and the broader national grid.
Deputy Chief Minister Bhatti Vikramarka Mallu of Telangana expressed optimism about the project, stating that the Telangana government is committed to leveraging the region’s geographical potential for the benefit of both states. “Our government is hopeful that these hydro projects will yield positive results and pave the way for more such collaborations in the future,” Mallu said, underscoring the strategic importance of this venture.
Future Prospects
With the signing of this MoU, both states are setting a precedent for future partnerships in the field of renewable energy. The Telangana government’s involvement in hydroelectric power generation in Himachal Pradesh is part of a broader strategy to diversify its energy portfolio and contribute to India’s commitment to sustainable energy development.
As both states look toward a greener and more energy-efficient future, the success of these projects could inspire other regions in India to explore similar collaborations for harnessing hydroelectric power. The cooperation between Telangana and Himachal Pradesh not only reflects the growing importance of renewable energy in the national agenda but also highlights the potential for states to work together in addressing the challenges posed by climate change and energy security.
This MoU marks the beginning of what promises to be a fruitful and sustainable energy partnership between two progressive states, setting the stage for more such collaborations in the future.
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