Himachal Pradesh Chief Minister Sukhvinder Sukhu on Tuesday met Union Home Minister Amit Shah in New Delhi and secured a breakthrough in the long-running financial dispute over the 422 MW Kishau dam project, ending an eight-year deadlock. The Centre has, in principle, agreed that the ₹2,000 crore power-component cost attributable to Himachal Pradesh will instead be borne by the three beneficiary states of the water component — Delhi, Rajasthan, and Haryana.

The Kishau Dam Project

The Kishau dam is proposed to be built on the Tons river, along the border of Uttarakhand and Himachal Pradesh, at an estimated total cost of ₹15,000 crore, according to a state government statement. The project has a power generation capacity of 422 MW and carries significant water-sharing implications for downstream states.

Why Himachal Refused to Pay

The previous Himachal Pradesh government had agreed to contribute ₹800 crore as the state's share toward the power component — a commitment the current Sukhu-led government rejected, citing the state's limited fiscal resources. Chief Minister Sukhu argued that while the Centre provides a 90 per cent grant for the water component, no comparable assistance was extended for the power component, making the arrangement inequitable.

Sukhu further noted that communities in the project area will face displacement, and the state will absorb the maximum ground-level losses from construction. 'Therefore, it is unfair for the State to bear financial burden further and its contribution towards the nation's progress should be compensated suitably,' he said.

What Himachal Pradesh Stands to Gain

Despite resisting the financial outlay, Himachal Pradesh is set to receive its proportional share of 100 crore units of electricity per year from the power component once the dam is operational. This translates to an estimated annual revenue of approximately ₹600 crore, providing a meaningful addition to the state's income.

Who Was at the Meeting

The high-level discussion was attended by Union Minister for Power Manohar Lal Khattar, Union Jal Shakti Minister C.R. Patil, chief ministers of the beneficiary states, and senior officials from the relevant central ministries. The broad representation signals that the Centre is treating this as a multi-state coordination matter rather than a bilateral dispute.

What Happens Next

With the financial impasse resolved in principle, formal approvals and inter-state cost-sharing agreements are expected to follow. The resolution clears a critical hurdle that had stalled the project for nearly a decade, and construction timelines are now likely to be revisited by the concerned ministries.