Himachal Pradesh to sell ₹400 crore power to Rajasthan at ₹15.50/unit: CM Sukhu
Synopsis
Key Takeaways
Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday, 4 November 2026, announced that the state has finalised an agreement to sell electricity to Rajasthan at ₹15.50 per unit, a deal expected to generate ₹400 crore in revenue over just four months. The announcement was made at a public meeting at Banjaraadu Kala Manch in Churah Assembly constituency, Chamba district, signalling the state government's push to monetise its hydropower surplus.
The Power Deal and What It Means
The electricity sale agreement with Rajasthan is among the more concrete revenue moves by the Sukhu government to shore up Himachal's finances. At ₹15.50 per unit, the rate is commercially significant for a state that has long generated surplus power but struggled to convert it into consistent fiscal gains. The ₹400 crore projected over four months translates into a substantial short-term injection for a hill state heavily dependent on Central transfers.
Separately, Chief Minister Sukhu said the state has taken up the matter with the Centre to increase Himachal's free power share in the 180 MW Baira-Siul Hydroelectric Project to 50 per cent, following the completion of 44 years of its operation. This push, if successful, would further strengthen the state's energy revenue base.
Wildflower Hall Case Resolved After Two Decades
CM Sukhu also highlighted a significant legal victory: the long-pending Wildflower Hall case in Shimla, which had been unresolved since 2003, has been settled in the state's favour through legal channels. The resolution has resulted in the state receiving ₹401 crore. For 23 years, the state had earned no revenue from the property; going forward, it is expected to generate approximately ₹37 crore annually through e-auctioning.
Announcements for Churah Constituency
Addressing local concerns, the Chief Minister announced that four senior secondary schools in Churah would be affiliated with the CBSE. He also committed government funds for road construction across various panchayats in the constituency. These announcements are part of a broader push that includes setting up Rajiv Gandhi Government Model Day-Boarding Schools, centres of excellence, and ensuring adequate teacher appointments in tribal areas.
Rural Economy and MSP Push
CM Sukhu said the government has, for the first time in Himachal's history, placed a strong focus on strengthening the rural economy. The state is currently offering a minimum support price (MSP) of ₹150 per kg for raw turmeric, ₹80 per kg for wheat, and ₹50 per kg for maize. On the dairy front, support prices stand at ₹61 per litre for cow's milk and ₹71 per litre for buffalo milk — nearly double the earlier rates, according to the Chief Minister.
He added that 100 per cent electrification and access to safe drinking water have been ensured across all permanent and seasonal tribal settlements in the state. The government, he said, remains committed to making Himachal self-reliant by closing avenues for corruption. With the Wildflower Hall revenues, the power deal proceeds, and an enhanced free-power claim in the pipeline, the state's near-term revenue picture is set to look markedly different.