Sukhu Govt Clears the Deck for Fresh Bids
Shimla | July 30, 2025
In a clean-up operation aimed at untangling Himachal’s jammed hydropower sector, the Sukhvinder Singh Sukhu-led Cabinet on Tuesday cancelled as many as 194 stalled hydroelectric projects — 172 under HIMURJA and 22 under the Directorate of Energy.
These projects, some stuck for over a decade, had neither moved a stone nor signed implementation agreements, turning into non-performing assets of the state’s energy ambitions.
The move, although long overdue, sends a strong signal to non-serious players — perform or perish.
All cancelled projects will now be re-advertised. Going forward, the state has decided to implement a uniform free power royalty regime of 12%, with an extra 1% earmarked for the Local Area Development Fund, applicable to all future projects up to 5 MW.
The Cabinet has also cracked open the door for developers looking for an out-of-court settlement.
A committee will be constituted to negotiate with 14 developers and explore refunding the principal upfront premiums — albeit without interest.
Critics, however, warn this could open floodgates for “premium refunds” and question why the government allowed such long delays in the first place.
The axe fell hardest on the smaller HIMURJA projects, many of which were handed out to private developers during previous regimes but remained stuck in a tangle of clearances, litigation, and lack of capital.
Meanwhile, the larger ones (above 5 MW) had simply failed to sign implementation agreements — despite being allotted years ago.
The government has given a final deadline of August 5 to remaining developers to respond to notices served earlier, failing which they too may face cancellation.
Other Cabinet Highlights —
Women in Night Shifts, Finally
In a progressive nod, women workers in shops and commercial establishments will now be allowed to work night shifts (7 PM to 7 AM) — a move hailed by gender rights activists.
The Cabinet also ensured that such women workers receive full maternity benefits under the Maternity Benefit Act, 1961.
Nursing Education Gets a Boost
With demand rising for skilled nurses, the Cabinet increased seats at Sister Nivedita Government Nursing College, Shimla from 60 to 100.
A new B.Sc. Nursing college was also approved at Dr. Rajendra Prasad Medical College, Tanda, with 60 seats and 27 new posts sanctioned.
Alliance Air Deal Extended
The MoU with Alliance Air to operate Shimla–Dharamshala–Shimla flights has been extended for another year till June 2026 — though previous reports have flagged concerns over the high operating cost and inconsistent schedules.
Mining Rules Tweaked
Contractors engaged in road cutting and reservoir desiltation will now be allowed to reuse the extracted material for captive use, and the leftover stock will be auctioned. Environmentalists have already raised red flags over monitoring and misuse.
Kangra Airport Expansion Gets Time
The land acquisition deadline under the Fair Compensation Act has been extended till August 2026 for Kangra airport — offering the project a breather, but also highlighting the snail-paced progress.
Drug Menace Under Scanner
The Excise and Taxation Department gave a presentation on the growing drug abuse challenge in the state, especially among youth — a problem flagged in multiple recent reports.
The Cabinet has promised more action but remains tight-lipped on concrete new steps.
While the Cabinet’s decision to clear clogged hydro projects is being seen as a bold reset, the success of re-advertising and attracting serious players remains uncertain — especially when investor confidence is shaky and regulatory hurdles remain.
And with refunds on the table, the government has walked into risky territory where “out-of-court” may become the new norm.
#HimachalCabinet #HydroPowerCleanUp #SukhuGovernment #EnergyPolicy #HimachalNews
