Chief Minister Sukhu warns, former BJP Govt-facilitated power companies of possible cancellation
Old photo. Used for indicative purpose only. CM Sukhu photo of day 1, Monsoon session 2023
Chief Minister Sukhu warns, former BJP Govt-facilitated power companies of possible cancellation
Shimla, Sept 19
In a address to the Vidhan Sabha on the second day of the Monsoon house, Chief Minister Sukhwinder Singh Sukhu issued a warning to mega power companies, including those in the public sector, that benefited from favourable treatment under the previous BJP government. He emphasized that these companies should prepare for potential cancellation if they do not comply with the new power policy and fail to meet the updated conditions set by the State government.
Responding to a question about hydel projects, Chief Minister Sukhu criticized the previous government’s handling of the energy sector, stating, “In this, the interests of Himachal were sold.” He revealed that agreements signed by the previous administration did not benefit future generations and had removed clauses related to royalties. Specific projects such as Sainj, Luhri, and Dhaula Siddh were originally intended to revert to government ownership after 40 years, but these clauses were also removed by the previous government.
Chief Minister Sukhu pointed out that the previous government had favoured large power companies at the expense of the state’s interests, including revenue generated from state projects. Under his leadership, the government has revised the energy policy and issued notices to project management to renegotiate power implementation agreements.
During an investor meet, amendments were made to the energy policy, which included provisions for four percent free electricity for the first 10 years of project construction, eight percent free power for the state from years 10 to 25, and 12 percent free power for years 25 to 40. Additionally, clauses regarding the payment of the Local Area Development Fund (LADA) and GST were removed under the previous rule.
Also read:Levy of water cess from Hydel projects to fill-in empty coffers
Chief Minister Sukhu stressed that the government had modified these relaxations and issued notices to all power sector companies, including SJVNL and NTPC. He emphasized that power projects must contribute to the revenue of hill states and should not be exempt from taxes and levies. Some mega power companies have challenged the government’s actions in the High Court, but the court has instructed officials to resolve the matter through dialogue with the government. The government has made it clear that if the companies do not accept the new conditions, their projects may be taken over.
The Chief Minister called on power producers and public sector companies to sign pre-power purchase and implementation agreement with the revised conditions to safeguard the interests of the people and ensure state revenues before entrusting the state’s natural resources to such firms.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me. https://www.binance.bh/register?ref=JW3W4Y3A