HYDERABAD: In a historic inter-state collaboration, the government of Telangana on Saturday inked a Memorandum of Understanding (MoU) with the Himachal Pradesh government for establishing 400 MW Seli and 120 MW Miar hydropower projects in Lahaul-Spiti district at an estimated cost of Rs 6,200 crore.
The agreements were signed by Principal Secretary of Power Sandeep Kumar Sultania on behalf of Telangana government and Secretary of Power Rakesh Kanwar on behalf of the Himachal Pradesh government, in the presence of Deputy CM Mallu Bhatti Vikramarka at Shimla and HP Chief Minister Sukhvinder Singh Sukhu, marking a significant step towards strengthening Telangana’s renewable energy capacity.
Both the projects, to be set up on the banks of Chenab river, are set to generate about 5,000 direct and indirect employment to Himachal youth. As per the agreement, Telangana government has paid Rs 26 crore as upfront premium and after the commissioning of both these projects, Himachal Pradesh will receive 12 per cent, 18 per cent and 30 per cent free power for the first 12 years, next 18 years and remaining 10 years respectively. After 40 years, the Telangana government would transfer both the projects to Himachal Pradesh.
Additionally, the Telangana government would contribute 1.5 per cent of cost of projects towards Local Area Development Fund (LADF) and provide additional one per cent free power for LADF after commissioning. The affected families of these projects will also receive monetary benefits equivalent to 100 units per month for a period of 10 years.
Speaking on the occasion, Vikramarka stated that Telangana government was committed to ensuring energy security for both the states, keeping in view its fast growing demand.
“In line with Telangana Clean and Green Energy Policy, 2025, this MoU reflects our commitment to diversifying our energy portfolio while ensuring environment sustainability. By partnering with Himachal Pradesh, we are taking a significant step towards securing cleaner, greener and more reliable power for our future,” he said.
The government of Telangana has been actively working towards increasing its renewable energy share and this agreement highlights the importance of inter-state cooperation in energy sector, he added.
He further highlighted that hydropower is a reliable renewable energy source with significant lower variable costs compared to thermal power.
“While the cost of thermal power generation increases every year, hydropower generation costs tend to decrease over time,” he added.
The collaboration leverages Himachal Pradesh’s abundant hydropower potential, fueled by perennial Himalayan rivers that allow power generation for nine to 10 months a year as compared to the limited hydropower production period on south Indian rivers.
“Telangana aims to utilise this natural resource to provide affordable, reliable and green power to its citizens,” Vikramarka said.
TGSPDCL CMD Musharraf Faruqui and Director Hydel TGGENCO Sachidannad were present on the occasion.
