Himachal Pradesh has entered into a significant partnership with the Telangana Government by signing Memorandums of Understanding (MoUs) for the establishment of two major hydroelectric power projects—400 MW Seli and 120 MW Miar—in the Lahaul-Spiti district. This marks the first collaboration of its kind in the history of Himachal Pradesh, setting a milestone in harnessing the state’s abundant hydro power potential. The MoUs were signed by Secretary Power Rakesh Kanwar on behalf of the Himachal Pradesh Government and Principal Secretary of Power Sandeep Kumar Sultania representing the Telangana Government. The signing ceremony took place in the presence of Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu and Telangana Deputy Chief Minister Bhatti Vikramarka Mallu in Shimla.
With an estimated project cost of ₹6,200 crore, these hydro power projects are expected to create approximately 5,000 direct and indirect employment opportunities for the youth of Himachal Pradesh. As per the agreement, the Telangana Government has already paid ₹26 crore as an upfront premium. Under the newly framed Energy Policy of the Himachal Pradesh Government, the state will receive free power at progressive rates—12 percent for the first 12 years, 18 percent for the following 18 years, and 30 percent for the remaining 10 years. After 40 years, Telangana will transfer complete ownership of both projects to Himachal Pradesh. Additionally, Telangana has committed to contributing 1.5 percent of the project cost towards the Local Area Development Fund (LADF) and will provide an additional one percent free power for LADF post-commissioning. Families affected by these projects will receive monetary benefits in the form of free electricity equivalent to 100 units per month for a period of 10 years.
Chief Minister Thakur Sukhvinder Singh Sukhu welcomed Telangana Deputy Chief Minister Bhatti Vikramarka Mallu and emphasized that this collaboration marks a new phase of inter-state cooperation in the renewable energy sector. He invited Telangana to explore further partnerships in power banking and trading while reaffirming his government’s commitment to ensuring that the state’s resources benefit its people. He stated that Himachal Pradesh will fully support Telangana in executing both projects and anticipates the commencement of construction at the earliest. He also highlighted that while the state has harnessed 11,500 MW of renewable energy so far, a significant portion has been utilized by central public sector undertakings. The present government is determined to change this and ensure that Himachal’s water resources are effectively utilized for the economic prosperity of its people.
Telangana Deputy Chief Minister Bhatti Vikramarka Mallu reiterated his government’s dedication to energy security for both states, keeping in view Telangana’s rapidly growing power demand. He emphasized that this MoU aligns with Telangana’s Clean and Green Energy Policy, 2025, which is focused on diversifying energy resources while maintaining environmental sustainability. He stated that this agreement represents a crucial step towards securing cleaner, greener, and more reliable power for the future. Telangana has been actively increasing its renewable energy share, and this partnership highlights the significance of inter-state cooperation in the energy sector.
The event was attended by Health and Family Welfare Minister Dr. (Col.) Dhani Ram Shandil, Principal Advisor Media to Chief Minister Naresh Chauhan, Chief Managing Director of Telangana State Southern Power Distribution Company Limited (TGSPDCL) Musharraf Faruqui, Director Energy Rakesh Prajapati, Special Secretary Power Arindam Chaudhary, and other senior officials from both states.
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