Himachal Pradesh Chief Minister Sukhvinder Sukhu on Tuesday, 15 September 2026, said his state would earn an annual revenue of over ₹1,000 crore from the sale of electricity once the 422 MW Kishau Multi-Purpose Project is operational. His remarks came after a landmark memorandum of understanding (MoU) was signed among six states for the construction of the ₹15,624 crore hydropower project on a tributary of the Yamuna River, located on the Uttarakhand-Himachal Pradesh border.

The MoU and Who Signed It

The agreement was signed in the presence of Union Home Minister Amit Shah. The signatories included Union Jal Shakti Minister C.R. Patil, Himachal Pradesh Chief Minister Sukhvinder Sukhu, Haryana Chief Minister Nayab Singh Saini, Uttarakhand Chief Minister Pushkar Singh Dhami, Uttar Pradesh Chief Minister Yogi Adityanath, Delhi Chief Minister Rekha Gupta, and Rajasthan Chief Minister Bhajan Lal Sharma. The six beneficiary states — Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Delhi, and Rajasthan — will share the power generated from the project.

Himachal's Financial Terms and the Cost Dispute

Chief Minister Sukhu highlighted that at a high-level meeting on 16 June under the chairmanship of Home Minister Shah, the Centre agreed in principle that the estimated ₹2,000 crore cost on the power component attributable to Himachal's side would be borne by the beneficiary states — Delhi, Rajasthan, and Haryana — rather than by Himachal itself.

Sukhu drew a pointed contrast with the previous state government, which had reportedly agreed to contribute ₹800 crore as Himachal's share. The present government refused that arrangement, citing the state's limited financial resources. According to Sukhu, the earlier concession was made without adequately protecting Himachal's fiscal interests.

Displacement and Compensation Concerns

The Chief Minister acknowledged that a section of Himachal's population would be displaced as a result of the project. He argued that since the state already bears the maximum social and environmental cost — in terms of displacement and land loss — it would be inequitable to additionally burden it with financial contributions. Sukhu stated that Himachal's contribution to national progress through such projects should be 'compensated suitably.'

Revenue Projections and Power Allocation

Under the agreed terms, Himachal Pradesh will receive its share of 1,000 million units of electricity per year from the power component of the project. At prevailing rates, this is projected to generate revenues of likely more than ₹1,000 crore annually once the project is completed. This comes amid Himachal's broader push to leverage its hydropower potential to shore up state finances, which have been under strain in recent years.

The Kishau dam pact represents one of the more significant multi-state water and power agreements in the Yamuna basin in recent memory, and its execution will be closely watched by all six signatory states.