Archive · 15 Sep 2026
Beneficiary States to Bear Himachal’s Rs 2,000 Crore Power Cost
Six Indian states signed an agreement to build a large water and electricity project.
The project is called the Kishau Multipurpose Project and will produce 422 megawatts of power.
It will be built on the Tons river between Himachal Pradesh and Uttarakhand.
Himachal Pradesh says it may have to deal with major displacement and losses because of the project.
Its chief minister said other states that benefit from the water should pay about Rs 2,000 crore toward Himachal’s power-related share.
Himachal Pradesh is expected to receive electricity worth more than Rs 1,000 crore each year.
The central government will provide most of the funding for the water part of the project.
The project is estimated to cost Rs 15,624 crore in total.
Six states signed an MoU for the 422 MW Kishau Multipurpose Project in New Delhi.
Chief Minister Sukhvinder Singh Sukhu said beneficiary states would bear Himachal Pradesh’s estimated Rs 2,000 crore power-component share.
The project will be built at an estimated cost of Rs 15,624 crore on the Tons river along the Himachal Pradesh-Uttarakhand border.
Himachal Pradesh is expected to receive 1,000 million units of electricity annually, worth likely more than Rs 1,000 crore.
The project’s water component will receive a 90 per cent central grant, while Himachal Pradesh said it should not bear the power component’s financial burden.
- Who
- Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Delhi and Rajasthan, whose chief ministers signed the agreement.
- What
- The states signed an MoU to implement the 422 MW Kishau Multipurpose Project.
- When
- The agreement was signed on September 15; a related high-level meeting was held on June 16.
- Where
- The project will be built on the Tons river along the border of Uttarakhand and Himachal Pradesh; the MoU was signed in New Delhi.
- Why
- Himachal Pradesh sought protection from the project’s financial burden because it expects displacement and other losses, while beneficiary states will receive water-related benefits.
- Project
- Kishau Multipurpose Project
- Capacity
- 422 MW
- Estimated total cost
- Rs 15,624 crore
- Himachal Pradesh power share
- 1,000 million units annually
- Proposed payment by beneficiary states
- Estimated Rs 2,000 crore toward Himachal Pradesh’s power component
- Water component grant
- The Centre is providing a 90 per cent grant
- River and location
- The project will be constructed on the Tons river, a Yamuna tributary, on the Uttarakhand-Himachal Pradesh border