Telangana and Himachal Pradesh Sign MoU for 520 MW Hydropower Project.
MOUs and Agreement
In March 2025, Telangana State Power Generation Corporation Limited (TSGENCO), based in Hyderabad (Telangana), signed a Memorandum of Understanding (MoU) with the Government of Himachal Pradesh (HP) for the development of two hydropower projects—Seli (400 Megawatt, MW) and Miar (Meyar) (120 MW)—to boost Telangana's renewable energy capacity.
- The projects will be developed in the Lahaul-Spiti district of HP at an estimated cost of Rs. 6,200 crore.
- The MoU was signed by Rakesh Kanwar, Secretary of Power, HP, on behalf of the HP Government, and Sandeep Kumar Sultania, Principal Secretary of Power, Telangana, on behalf of the Telangana Government.
- The signing ceremony was attended by Chief Minister of HP Sukhvinder Singh Sukhu, Deputy CM Bhatti Vikramarka Mallu, and Telangana's Energy Minister.
Main Point :- (i) The hydropower projects, located on the Chenab River, will create 5,000 direct and indirect employment opportunities in Himachal Pradesh. Telangana has paid an upfront premium of Rs. 26 crore and will provide free power to Himachal Pradesh at varying percentages over the next 40 years, after which both projects will be transferred to Himachal Pradesh.
(ii) Telangana will also contribute 1.5% of the project costs to the Local Area Development Fund (LADF) and offer an additional 1% of free power for LADF after commissioning. Affected families will receive benefits equivalent to 100 units per month for 10 years.
(iii) The projects will harness the perennial waters of Himachal Pradesh's Himalayan rivers, which provide hydropower generation for 9-10 months annually, aligning with Telangana's Clean & Green Energy Policy 2025 for sustainable energy development.
About Telangana State Power Generation Corporation Limited (TSGENCO)
Chairman and Managing Director (CMD): Sandeep Kumar Sultania
Headquarters : Hyderabad, Telangana
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