Kishau dam project: Himachal CM Sukhu says BJP would have cost state ₹600 crore yearly

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Kishau dam project: Himachal CM Sukhu says BJP would have cost state ₹600 crore yearly

Synopsis

Himachal CM Sukhvinder Sukhu claims the Congress government's refusal to accept the 2023 Kishau dam deal will generate an extra ₹600 crore annually for the state — and says a BJP government would have quietly signed it away. With ₹1,500 crore in Centre-promised disaster funds still pending and the RDG slashed by ₹10,000 crore a year, Sukhu is framing the Kishau win as proof that Congress alone guards the hill state's economic interests.

Key Takeaways

CM Sukhvinder Sukhu alleged the BJP would have accepted the 2023 Kishau dam deal , compromising Himachal Pradesh's interests.
The Congress government's renegotiated agreement will yield an additional ₹600 crore in annual revenue for the state.
Himachal Pradesh is still awaiting ₹1,500 crore in disaster relief funds announced by PM Modi during his 2025 Kangra visit .
The state raised disaster compensation for fully damaged homes from ₹1.3 lakh to ₹8 lakh — reportedly the highest in India.
The Centre cut the state's Revenue Deficit Grant (RDG) by ₹10,000 crore per year , adding to fiscal pressure.
Sukhu alleged the BJP uses the ED and CBI for political purposes ahead of elections.

Himachal Pradesh Chief Minister Sukhvinder Sukhu on Thursday, 9 July charged that had the Bharatiya Janata Party (BJP) been in power in the state, it would have compromised Himachal Pradesh's interests in the Kishau dam project, accepting a previous agreement that he said would have inflicted a heavy loss on the state exchequer.

The Kishau Dam Agreement

Sukhu said the Congress government rejected the 2023 deal on the Kishau dam project and renegotiated terms that he described as a major victory for the state's economic interests. Under the revised agreement, Himachal Pradesh stands to earn an additional ₹600 crore in annual revenue — a figure the Chief Minister attributed directly to the state government's decision to push back against the earlier terms.

Centre's Neglect and Pending Relief

Sukhu also trained his guns on the Centre, alleging that it has been neglecting the hill state's interests at the cost of the common citizen. He pointed out that Himachal Pradesh is still awaiting ₹1,500 crore in disaster relief funds that Prime Minister Narendra Modi had announced during his Kangra visit in 2025. The Chief Minister said the state's four BJP Members of Parliament had not collectively approached the Prime Minister to press for this pending disbursement.

This comes amid a ₹10,000 crore per year cut in the state's Revenue Deficit Grant (RDG) — a fiscal squeeze that Sukhu said has not deterred the government from pursuing its self-reliance agenda.

Disaster Relief and Welfare Measures

Referring to recurring natural calamities in the state, Sukhu highlighted that the government had raised compensation for fully damaged homes from ₹1.3 lakh to ₹8 lakh using its own resources — which he described as the highest disaster relief payout in the country. He added that welfare schemes have been rolled out for orphaned children, widows, single women, and meritorious students, framing these as proof of the Congress government's 'Vyavastha Parivartan' (systemic change) promise.

Sukhu also disclosed that he had personally donated ₹51 lakh to disaster-affected families, and had earlier contributed ₹35 lakh to the state during the Covid-19 pandemic when Jai Ram Thakur was Chief Minister.

Political Allegations Against BJP

Responding to a question at a public function in Shimla, Sukhu alleged that the BJP deploys the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) for political purposes ahead of elections. He further claimed that the BJP is internally fractured into rival factions competing for power, and that public confidence in the party has eroded in Himachal Pradesh.

Sukhu maintained that no allegations have been levelled against his Cabinet in the past three-and-a-half years, contrasting this with what he described as the BJP's record in the state. With assembly elections on the horizon, the political temperature in Himachal Pradesh is set to rise further.

Point of View

000 crore RDG cut. What mainstream coverage misses is the Centre-state tension embedded in the Kishau story: the dam sits across Himachal and Uttarakhand, and renegotiating its revenue-sharing terms against a backdrop of reduced grants signals that Shimla is willing to use infrastructure leverage to compensate for shrinking transfers. The ₹1,500 crore pending relief figure — unverified independently — is the sharper accountability test. If the funds were announced by the Prime Minister and remain unreleased nearly two years later, that is a governance failure regardless of which party governs the state.
NationPress
9 Jul 2026

Frequently Asked Questions

What is the Kishau dam project and why is it in the news?
The Kishau dam is a hydropower and irrigation project on the Tons river, spanning Himachal Pradesh and Uttarakhand. It is in the news because CM Sukhu claims the Congress government rejected a 2023 agreement it deemed unfavourable and renegotiated terms that will earn the state an additional ₹600 crore annually.
How much additional revenue will Himachal Pradesh earn from the revised Kishau deal?
According to CM Sukhu, the revised agreement will generate an additional ₹600 crore in annual revenue for Himachal Pradesh compared to what the 2023 deal would have yielded.
Why is the ₹1,500 crore disaster relief from the Centre still pending?
PM Modi had announced ₹1,500 crore in disaster relief for Himachal Pradesh during his Kangra visit in 2025, but the funds have not been released as of July 2026, according to CM Sukhu. He also alleged that the state's four BJP MPs have not jointly lobbied the Prime Minister for the disbursement.
What is the Revenue Deficit Grant cut and how does it affect Himachal Pradesh?
The Centre has reduced Himachal Pradesh's Revenue Deficit Grant (RDG) by ₹10,000 crore per year, tightening the state's fiscal position. CM Sukhu said the government has continued to fund welfare and disaster relief despite this reduction.
What did CM Sukhu say about the BJP's use of central agencies?
Sukhu alleged that the BJP uses the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) as political tools ahead of elections. He made the remarks in response to a question at a public function in Shimla on 9 July.
Nation Press
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