Shimla, Apr 25,
A single bench of the Himachal high court led by Justice Ajay Mohan Goyal, has stayed the state government’s move to take over the 180 MW Baira Siul Hydro Power Project currently operated by the National Hydroelectric Power Corporation (NHPC). The interim order was issued in response to a petition filed by NHPC, which has challenged the state government’s attempt to reclaim the project.
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“this Court directs that let status
quo as it exists qua the “Baira Siul Hydroelectric 180 MW Project” be maintained by the respondents. Impugned communication dated 26.03.2025 (Annexure P-4) and decision of the Council of Ministers (Annexure P-7) qua the project in
issue shall not be given effect to by the respondents-State till further orders” stated the court order.
Commissioned in 1980-81, the Baira Siul project was originally set to be handed back to the state government after 40 years of operation, as per the terms of the initial agreement. Following the completion of this period, the state initiated steps to regain control of the project. NHPC, however, has opposed the move, asserting a claim of perpetual ownership on the grounds of having modernized the plant in August 2021.
The matter was heard on April 22, during which NHPC was represented by senior counsel Tushar Mehta via video conferencing. After considering the arguments presented, the court ordered a status quo to be maintained and stayed all communications and Cabinet decisions taken by the state government regarding the proposed takeover until further orders. The next hearing in the matter has been scheduled for May 26.
Meanwhile, the state government is also exploring the possibility of reclaiming two other centrally operated hydro projects—NHPC’s Duggar Project and SJVN’s Luhri and Dhaulasidh Projects. The central government has reportedly demanded Rs. 3,400 crore as the amount invested in these projects, while the state is planning to appoint an independent evaluator to assess their current value before proceeding further.
