State Government Takes Stand on Hydropower Project Royalties

Chief Minister Sukhvinder Singh Sukhu has warned that hydropower projects will be reclaimed if NHPC does not revise its royalty conditions according to state policy. The current indefinite 12% royalty arrangement is being challenged to reflect varying rates of 12, 18, and 30 percent over different periods.

The state government has issued a decisive warning regarding royalties on hydropower projects. Chief Minister Sukhvinder Singh Sukhu declared on Tuesday that the National Hydro Power Corporation (NHPC) must adhere to newly proposed state conditions or face the reclamation of projects.

Previously, the state allowed NHPC indefinite usage rights at a fixed 12% royalty. However, Sukhu emphasized to Union Energy Minister Manohar Lal that the policy now dictates royalty payments should be at 12%, 18%, and 30% over various periods, with projects reverting to state control after 40 years.

Amidst ongoing discussions with NHPC's Managing Director, Sukhu also highlighted the issue of surplus land with hydropower projects and insisted on prioritizing displaced families for employment within these projects. The memorandum of understanding with NHPC is under government review.

(With inputs from agencies.)