Shimla, April 7: Sutlej Jal Vidyut Nigam (SJVN) is preparing for a protracted legal battle after the Himachal Pradesh government approved the takeover of three major hydropower projects previously allotted to the central PSU.
The state Cabinet on Saturday cleared the takeover of the 382 MW Sunni, 210 MW Luhri Stage-I, and 66 MW Dhaulasidh projects—granted to SJVN by the previous Jai Ram Thakur-led BJP government. In addition, it decided to withdraw the 500 MW Dugar and 180 MW Baira Suil projects from NHPC.
With the collapse of negotiations over new terms for these projects, SJVN ruled out any possibility of an out-of-court settlement. “The possibility of any mutual understanding has ended with the government’s decision to take over the projects. Now, the matter will be decided in court,” said Ajay Sharma, Director (Personnel), SJVN.
The current Sukhvinder Singh Sukhu government is demanding a revised framework—seeking a free power share at progressive rates of 12, 18, and 30 percent and full return of the projects to the state after 40 years. SJVN, however, wants to continue under the earlier terms, which included concessions on free power in the first 12 years and no obligation to return the assets.
“These projects wouldn’t have taken off at all without the relaxations,” Sharma said, referring to financial viability. “The Government of India approves investment only if the tariff is around Rs 5.50 per unit. The tariff at Luhri and Dhaulasidh was initially around Rs 8 to Rs 8.50 per unit. The earlier concessions helped bring it down to Rs 5.50–Rs 5.75.”
Another source of friction is SJVN beginning work on the projects before signing a formal Implementation Agreement (IA). Sharma claimed there had been a broad understanding with the previous regime, and the IA was close to finalization before the 2022 Assembly elections. “The new government refused to honour the agreed terms,” he said.
Calling the takeover move “unfortunate,” Sharma said SJVN had already completed nearly 60 percent of construction on the three projects. “We can’t afford to stop work even for a few days as it will lead to cost overruns and expensive power. If we’re forced to hand over the projects at this stage, it will be extremely difficult for any other entity to complete them,” he added.
