Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Minister Manohar Lal Khattar in New Delhi on Wednesday, June 17, 2026, to press a multi-point agenda covering hydropower royalties, long-pending energy arrears, and urban infrastructure funding for the hill state.

Context

Posting on X after the meeting, CM Sukhu outlined five specific demands placed before Khattar, who holds the Union portfolios of Power and Housing & Urban Affairs. The discussions centred on Himachal Pradesh's share of electricity from central-sector projects and clearance of dues owed by neighbouring states through the Bhakra Beas Management Board (BBMB).

In his words, the meeting covered 'हिमाचल प्रदेश के हितों को लेकर चर्चा' — discussions on the interests of Himachal Pradesh — signalling the state government's intent to extract maximum benefit from its role as a host to major hydropower infrastructure.

Policy Backdrop

Central-sector hydroelectric projects have paid host states a standard 12 percent free-power royalty under the hydropower policy framework dating to the late 1990s. CM Sukhu requested that this share be enhanced for projects that have already completed their initial 12-year period of operation under central public-sector undertakings.

The most pointed demand concerned the 180 MW Baira-Siul Hydroelectric Project, operated by NHPC in Himachal Pradesh, which has now completed 44 years of operation since its commissioning in the early 1980s. Sukhu urged that the state's free-power share in this project be raised to 50 percent, arguing that the project's age and the state's sustained hosting justify a substantially higher royalty.

Royalty enhancement clauses for legacy projects have been periodically renegotiated for older NHPC plants in Himalayan states, making Sukhu's demand consistent with a broader pattern of hill-state advocacy on this issue.

BBMB Arrears and Inter-State Dues

A significant portion of the meeting addressed delayed payments from BBMB projects. The Chief Minister raised the issue of energy arrears owed to Himachal Pradesh, noting that both Haryana and Punjab had by their own consent agreed to settle 13,066 million units of energy dues up to October 31, 2011, along with 6 percent interest on subsequent dues. The total liability, including interest, amounts to Rs 7,784 crore.

BBMB's power-sharing arrangements stem from the Punjab Reorganisation Act of 1966 and subsequent agreements among partner states in the 1980s and 1990s. Delays in settling such dues have been a recurring fiscal pressure point for Himachal Pradesh, which depends significantly on hydro-sector revenues to fund state expenditure.

Kangra Urban Projects and What's Next

CM Sukhu also requested central financial assistance for two proposed urban development projects in Kangra district: an 'Aero City' linked to aviation infrastructure and a project called 'Him Chandigarh'. Both proposals require Union government support to move forward, and the Chief Minister formally placed these before Khattar in his capacity as Housing & Urban Affairs Minister.

The Ministry of Power's response on royalty revisions for legacy hydro projects, and any budgetary commitments toward Kangra urban development, will be the key indicators of whether this meeting translates into concrete policy outcomes. Himalayan states have long sought higher free-power shares and arrears clearance to address fiscal stress and rising power purchase costs — and Sukhu's push fits squarely within that pattern of centre-state negotiation.