Centre rejects HP request to hike hydro-power royalty

Kullu: The Union ministry of power has rejected the Himachal Pradesh government’s proposal to hike free power royalty it charges from the central hydro-power projects.In a reply to a question asked by state Congress chief and Mandi MP Pratibha Singh in the ongoing winter session of the Lok Sabha, the power ministry has stated that the Himachal government’s proposal has not been accepted as the Hydro Power Policy, 2008, allows maximum free power royalty of 12% to the home states concerned from hydroelectric projects. The Himachal government had proposed a hike in power royalty from present 12% to 30% from the central hydro projects. The reply further stated, “The power ministry has received a proposal from the Himachal government to increase the royalty in terms of free power from 12% to 30% from Nathpa Jhakri (1500 MW) and Rampur (400 MW) hydroelectric projects of Satluj Jal Vidyut Nigam Limited (SJVNL). However, it was not accepted.”To another question asked by the Mandi MP, the power ministry has clarified that it has not received any proposal from the Himachal government for the release of an “outstanding amount of Rs 4,000 crore from the Bhakra Beas Management Board (BBMB)”. The state government had in May this year announced to raise free power royalty for private projects as well. The government had proposed to increase the free power royalty for private projects to 15% for the first 12 years, 20% for the next 18 years and 30% for the next 10 years from 12%, 18% and 30%, respectively.Shanan project: Submissions soughtThe Union government has asked both the Punjab and Himachal Pradesh governments to submit in detail their respective submissions on transferring the ownership rights of Shanan hydroelectric project so that “a decision can be made in accordance with the law”. Replying to a question asked by Mandi MP Pratibha Singh in the Lok Sabha, the power ministry further stated that it has already received a representation in this regard from the Himachal Pradesh government. Located in Barot valley of Jogindernagar in Mandi district of Himachal Pradesh, the 99-year lease period of the 110MW British-era Shanan hydro power project is expiring on March 2, 1925.