Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has urged the Central government to grant the state 50 percent royalty on water used by hydropower plants, stating that such a move would help strengthen the hill state’s financial position.
Speaking about the issue, the chief minister said the state has requested the Centre to provide a larger share of benefits from hydroelectric projects since these projects utilise Himachal Pradesh’s water resources, which he described as the state’s natural wealth. He added that if the Union government agrees to provide 50 percent royalty on the water used for hydropower generation, the state may no longer need revenue deficit grants from the Centre.
The demand comes after the Centre decided to discontinue Revenue Deficit Grants (RDG) for some states, including Himachal Pradesh. These grants are provided to states to bridge the gap between their revenue receipts and expenditure. The chief minister said the royalty on water used by hydroelectric plants could serve as an alternative financial support mechanism for the state.
Sukhu also pointed out that several large hydropower projects operating in the state are run by public sector companies such as NHPC, NTPC and SJVN, which generate significant revenues using the state’s river resources. He said Himachal Pradesh should receive a larger share of the economic benefits from these projects, as the state provides the natural resources required for power generation.
The chief minister emphasised that increasing the royalty share would help the state become more financially self-reliant and support its long-term development needs, while ensuring that Himachal Pradesh receives a fair return for the utilisation of its water resources in hydropower generation.
