Big win for Himachal: Centre accepts demand of zero investment in Kishau project

In what Chief Minister Sukhvinder Singh Sukhu described as a “major victory” for Himachal Pradesh, the Centre on Tuesday agreed that the state would not be required to bear any financial burden for the construction of the proposed Kishau Multipurpose Project on the Himachal Pradesh-Uttarakhand border.

Following a high-level meeting chaired by Union Home Minister Amit Shah in New Delhi, Sukhu said the state government had successfully safeguarded Himachal Pradesh’s interests by rejecting the terms agreed upon during the tenure of the previous BJP government and securing a fresh arrangement under which the state would receive substantial benefits without making any financial contribution to the project.

“The Union Home Minister and other stakeholders agreed to our condition that Himachal Pradesh will not spend any money on the project, as the natural resources, including water and land, belong to Himachal Pradesh,” Sukhu told reporters after the meeting.

The meeting was attended by Uttarakhand Chief Minister Pushkar Singh Dhami, Union Power Minister Manohar Lal Khattar, Union Jal Shakti Minister C.R. Patil and representatives of the beneficiary states.

According to Sukhu, it was decided that states expected to benefit from the project’s water and power components, including Punjab, Haryana and Delhi, would bear the financial burden of the project.

“It was agreed that if Punjab, Haryana and Delhi want water and electricity from the Kishau Multipurpose Project, they should bear the cost. Uttarakhand has agreed to bear the expenditure falling on its share of the project and requested the Union Home Minister to facilitate financial assistance and loans for construction,” he said.

The Chief Minister claimed that once power generation begins, Himachal Pradesh would earn more than Rs 600 crore annually without investing any funds in the project.

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Taking a swipe at the previous BJP government led by Jai Ram Thakur, Sukhu alleged that the former administration had failed to adequately safeguard the state’s interests during negotiations on the project.

The Kishau Multipurpose Project is proposed on the Tons River, a major tributary of the Yamuna, along the Himachal Pradesh-Uttarakhand border. The project site falls in Sirmaur district of Himachal Pradesh and is located about 50 km upstream of Dakpathar and around 10 km upstream of the existing Ichhari Dam.

Estimated to cost around Rs 11,500 crore, the project is expected to generate 660 MW of hydroelectric power while also providing irrigation and drinking water benefits to several northern states. However, it has remained contentious because of concerns over displacement and environmental impact.

The development marks an endorsement of the stand taken by the Himachal Pradesh government at a meeting of the Upper Yamuna Board in New Delhi in December last year. At that meeting, also chaired by Amit Shah, the state government had categorically informed the Centre that it would not bear any financial burden for the project and had placed three key demands before the Union Government.

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These included full central funding of the project, release of nearly Rs 4,000 crore in pending arrears from the Bhakra Beas Management Board (BBMB), and resolution of long-pending rehabilitation and compensation issues relating to Pong Dam and BBMB project oustees.

State Energy Secretary Rakesh Kanwar had argued that while Punjab, Haryana, Uttar Pradesh and Delhi would be the principal beneficiaries of the project’s water resources, their financial contribution remained unclear. He had also pointed out that Himachal Pradesh would bear a disproportionate share of the burden in terms of land acquisition, displacement and environmental impact.

According to a 2020 feasibility study, nearly 1,498 hectares of land in Himachal Pradesh, including eight villages affecting about 2,092 people, are likely to be submerged. In Uttarakhand, around 1,452 hectares across nine villages, affecting an estimated 3,406 people, would also be submerged. The total area expected to go under water is about 2,950 hectares.

The memorandum of understanding for establishing a joint venture to execute the project was signed by the governments of Himachal Pradesh and Uttarakhand in June 2015.

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Tuesday’s decision is expected to remove a major hurdle in the implementation of the long-pending project while allowing Himachal Pradesh to earn revenue from power generation without any direct financial investment.