Sukhu Government Secures ₹600 Crore Annual Revenue, Resolves 8-Year Kishau Dam Deadlock

CM Sukhu resolves an 8-year financial deadlock over the Kishau Dam project, securing ₹600 crore annually for Himachal Pradesh

Jun 17, 2026 - 13:29

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Sukhu Government Secures ₹600 Crore Annual Revenue, Resolves 8-Year Kishau Dam Deadlock

Shimla : In a major financial and diplomatic breakthrough for debt-ridden Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu has successfully resolved an eight-year-old financial deadlock surrounding the multi-crore Kishau Dam project. Following a high-level meeting chaired by Union Home Minister Amit Shah in New Delhi, the project is officially set to move forward, promising the hill state an annual revenue of ₹600 crore.

The 422 MW Kishau Dam project, proposed on the Tons River along the Uttarakhand-Himachal border, carries an estimated construction cost of ₹15,000 crore. While the Central Government provides a 90% grant for the water component, the power component had been stalled due to funding disputes.

Breaking the stalemate, the Centre has given in-principle approval for the beneficiary states—Delhi, Rajasthan, and Haryana—to bear Himachal’s ₹2,000 crore share of the power component cost.

Chief Minister Sukhu highlighted that the previous administration had agreed to pay ₹800 crore from the state's pockets, a move his government rejected due to Himachal’s limited resources and the high displacement burden faced by its residents. He emphasized that it was unfair for Himachal to bear extra financial weight when it suffers the maximum environmental and local impact.

Once completed, Himachal Pradesh will receive 100 crore units of electricity annually from the power component, valued at approximately ₹600 crore. This clean energy share will significantly boost the state’s financial resources.

The crucial meeting was also attended by Union Power Minister Manohar Lal Khattar, Union Jal Shakti Minister C.R. Patil, Chief Ministers of the beneficiary states, and top administrative officials from Himachal Pradesh. Sukhu termed this historic agreement a massive victory for the state’s legitimate rights and economic interests.

(Report by Jietndra Verma / Buero)

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