Shimla, June 17
Chief Minister Sukhvinder Singh Sukhu on Tuesday announced a major breakthrough for Himachal Pradesh in the long-pending Kishau Dam Project, stating that the state government has successfully resolved an eight-year-old financial dispute while safeguarding the state’s interests.
The 422 MW Kishau Dam Project, estimated to cost around ₹15,000 crore, is proposed on the Tons River along the Himachal Pradesh-Uttarakhand border. The development followed a high-level meeting chaired by Union Home Minister Amit Shah in New Delhi, during which the Chief Minister strongly advocated the state’s interests.
Sukhu said the Government of India has, in principle, agreed that beneficiary states, including Delhi, Rajasthan and Haryana, which will benefit from the project’s water component, will bear Himachal Pradesh’s share of the power component cost estimated at nearly ₹2,000 crore.
The Chief Minister said the decision would significantly reduce the financial burden on Himachal Pradesh. He noted that the previous state government had agreed to contribute ₹800 crore towards the project, but the present government declined the proposal, considering the state’s limited financial resources.
He further stated that while the Centre is providing 90 percent grant support for the water component of the project, a similar arrangement for the power component was necessary to ensure fairness.
Sukhu emphasized that Himachal Pradesh would face the highest displacement and social impact from the project and therefore should not be subjected to additional financial liabilities. He said the state’s contribution to nation-building deserves appropriate compensation.
According to the Chief Minister, once completed, the project will provide Himachal Pradesh with an annual share of 100 crore units of electricity. The power allocation is expected to generate revenue of nearly ₹600 crore annually, strengthening the state’s financial resources.
He said the present government has consistently placed the interests of Himachal Pradesh and its people above all else and described the development as a significant victory in protecting the state’s rightful claims in power projects and other pending issues.
The meeting was attended by Union Power Minister Manohar Lal Khattar, Union Jal Shakti Minister C.R. Patil, the Chief Ministers of the beneficiary states, senior officials from the concerned ministries, Himachal Pradesh Chief Secretary K.K. Pant, Principal Advisor to the Chief Minister Ram Subhag Singh, and Director of Energy Rakesh Prajapati.

