The Telangana Government has entered into an agreement with the Himachal Pradesh Government to develop two major hydropower projects in the Lahaul-Spiti district. The projects—400 MW Seli and 120 MW Miar—will be constructed along the Chenab River with an estimated investment of Rs 6,200 crore.
The Memorandum of Understanding (MoU) was formalized in Shimla, with key officials from both states signing the agreement. Telangana’s Principal Secretary of Power and Himachal Pradesh’s Secretary of Power represented their respective governments during the signing, in the presence of senior state leadership.
Under the terms of the agreement, Telangana has made an upfront payment of Rs 26 crore. Himachal Pradesh will receive a structured allocation of free power post-commissioning—12 per cent for the first 12 years, increasing to 18 per cent for the following 18 years, and 30 per cent for the final decade. Ownership of the projects will be transferred to Himachal Pradesh after 40 years.
The Telangana Government will allocate 1.5 per cent of the project cost to the Local Area Development Fund (LADF) and contribute an additional 1 per cent of free power to LADF once the projects are operational. Affected families in the region will receive monetary benefits equivalent to 100 units of electricity per month for ten years.
The initiative aligns with Telangana’s renewable energy expansion strategy, aimed at securing cleaner and more sustainable power sources. Hydropower, known for its reliability and lower long-term costs compared to thermal power, is expected to strengthen Telangana’s energy portfolio while leveraging Himachal Pradesh’s abundant water resources.
The partnership is anticipated to generate approximately 5,000 direct and indirect jobs for local youth. Officials from TGSPDCL and TGGENCO were also present during the signing ceremony, highlighting the significance of inter-state collaboration in the renewable energy sector.