Kishau MoU secures Himachal’s interests; State to earn Rs 1,200–1,500 crore annually, says CM Sukhu
Babushahi Bureau
Shimla/New Delhi, September 15, 2026: Himachal Pradesh is expected to earn around ₹1,200–1,500 crore annually once the Kishau Power Project is completed, Chief Minister Sukhvinder Singh Sukhu said on Tuesday, describing the signing of the project’s MoU as a “new chapter” in the state’s economic benefits from its water resources.
Sukhu said the agreement has secured Himachal Pradesh’s interests and would ensure that the state receives substantial economic benefits from the power project. He said the Kishau project marks a significant development for Himachal, whose biggest natural resource is water.
The Chief Minister said that during the previous BJP government, Himachal had agreed to bear the cost of the power project. However, after his government came to power, it registered its disagreement with the arrangement.
Sukhu said his government took the position that if the Centre bears the cost of supplying water to the beneficiary states, then the benefits from electricity generated using Himachal’s water resources should also be secured in the state’s interest.
“This is a question of justice for our resources,” Sukhu said, adding that Uttarakhand has agreed to bear its share of the project cost.
The Chief Minister said discussions were subsequently held with Union Home Minister Amit Shah, following which the concerns raised by Himachal were addressed in the agreement.
“Today, I am happy that through the MoU of the Kishau Power Project, Himachal’s interests have been protected and the state will receive major economic benefits in the coming years,” Sukhu said.
The 422-MW Kishau Multipurpose Project, proposed on the Tons River, has been under discussion for years among the participating states over issues including financial liabilities, water sharing and distribution of project benefits. The MoU was signed in New Delhi in the presence of Amit Shah and Union Jal Shakti Minister C.R. Patil, with the chief ministers of the participating states.
The project involves Himachal Pradesh, Uttarakhand, Haryana, Uttar Pradesh, Rajasthan and Delhi. The agreement is expected to clear a major hurdle in taking the long-pending project forward.