The Chief Minister's Office of Himachal Pradesh on Thursday, 2 July 2026, directed state energy department officials to initiate the process of reclaiming three major hydropower projects previously allotted to SJVN Limited — totalling 658 megawatts of installed capacity — following a high-level review meeting chaired in Shimla.

The post, shared by the official CMO Himachal Pradesh account, states: 'aaj Shimla mein urja vibhag ki uch stariya baithak ki adhyakshata karte hue adhikariyon ko purv mein SJVNL ko aavantit 382 MW Sunni, 210 MW Luhri Charan-1 tatha 66 MW Dhaulasiddh jalavidyut pariyojanaon ko wapas lene ki prakriya shuru karne ke nirdesh diye' — directing officials to begin the retrieval of the 382 MW Sunni, 210 MW Luhri Phase-1, and 66 MW Dhaulasiddh hydroelectric projects from SJVN.

Context

SJVN Limited is a joint-venture public sector undertaking of the Government of India and the Government of Himachal Pradesh, primarily engaged in hydropower development along the Satluj river basin. All three projects — Sunni (382 MW), Luhri Phase-1 (210 MW), and Dhaulasiddh (66 MW) — are located in Himachal Pradesh and were allotted to SJVN under state power policies formulated in the 2000s to accelerate development through joint-sector participation.

The combined capacity of the three projects stands at 658 MW, representing a significant share of the state's pipeline of hydropower assets under central or joint-sector management.

Policy Backdrop

Himachal Pradesh governments have periodically reviewed hydropower allotments and, in several instances, withdrawn projects from central or joint-sector PSUs citing implementation delays or a preference for alternative execution models. Such decisions are part of the state's broader effort to assert greater control over its substantial hydropower resources, which are constitutionally recognised as a key revenue and development asset for hill states.

The move sits within a national context of expanding renewable energy capacity while navigating complex environmental, social, and inter-governmental clearance frameworks. Withdrawal of allotments typically precedes fresh bidding or transfer to a state-owned entity for development.

Stakeholders and Impact

SJVN Limited stands as the most directly affected party; the retrieval process, once formally initiated, would require regulatory and possibly legal steps before the projects are re-allotted or developed through a different route. Communities in the project-area districts — particularly those along the Satluj river corridor — have long-standing interests in project timelines, employment, and local development commitments tied to these allotments.

Independent hydropower developers and state-sector entities could emerge as prospective beneficiaries if the projects are put to fresh tender. The decision may also have implications for SJVN's project pipeline disclosures and capacity targets.

What's Next

The immediate step is the formal initiation of the retrieval process by the Himachal Pradesh Energy Department, which would involve issuing notices to SJVN and engaging relevant regulatory bodies. Subsequent decisions — including whether the projects will be developed by a state entity, re-tendered, or restructured as revised joint ventures — are expected to emerge from cabinet-level deliberations in the coming months.

The trajectory of these three projects will be a bellwether for how Himachal Pradesh manages its hydropower development agenda at a time of heightened national focus on clean energy capacity addition.