Himachal Pradesh Signs Agreements for 19 Hydropower Projects Totaling 278 MW and ₹3,336 Crore

The Himachal Pradesh government formalized implementation agreements for 19 hydropower projects in Shimla on June 22, 2026. This initiative represents a total generation capacity of 278 MW and a projected investment of ₹3,336 crore. The state administration cited energy revenue growth and regional economic strengthening as the primary drivers for the formalization of these contracts, which occurred during the current fiscal year as reported in the June 23 news cycle.

Implementation Agreements: Project Specifications and List

The 19 signed agreements encompass small and medium-scale run-of-river installations situated across multiple river basins, including the Ravi, Beas, and Satluj. These projects represent a cumulative investment of ₹3,336 crore.

The specific projects, sorted by generation capacity in megawatts (MW), are listed below:

• Tundah Stage-II: 24 MW
• Bharmour Stage-I: 24 MW
• Harsar Stage-II: 22.5 MW
• Bharmour Stage-II: 21 MW
• Harsar Stage-III: 19 MW
• Janglik: 18 MW
• Toral Kundli: 18 MW
• Dunali-I and II: 17 MW
• Rupin Stage-II: 15 MW
• Tundan: 15 MW
• Jari: 12 MW
• Kalal Khol: 11 MW
• Umli: 10 MW
• Kot Dogri: 10 MW
• Melan: 9.6 MW
• Soyal Dashal: 9 MW
• Gramang: 9 MW
• Upper Kurmi: 8 MW
• Khauli-II: 6 MW

Revised Power Policy: Royalty and Duration Framework

The state government has amended the power policy to provide a standardized regulatory framework for energy developers. These modifications are intended by the administration to provide fiscal clarity for sector investments.

The updated regulatory framework includes the following specifications:

• Applicability: The revised rules apply to hydropower projects with a capacity up to 25 MW.
• Uniform Royalty Rate: The royalty rate is fixed at a uniform 12%.
• Duration: The established royalty rate and framework are fixed for a 40-year period.

Project Cancellations and Global Bidding Strategy

The state government has executed administrative action regarding stalled infrastructure by cancelling the allotments of 15 hydropower projects. This decision followed a government determination that the original developers demonstrated a lack of interest in implementation or failed to achieve progress on the sites.

To facilitate the execution of these projects, the state plans to initiate fresh international bidding. This strategy is designed to attract developers capable of meeting implementation timelines and providing the necessary capital to bring these stalled projects into operation.

Operational Milestones and Geothermal Exploration

The state government reported the completion of the Tidong Stage-I Hydroelectric Project, which has a generation capacity of 150 MW.

Additionally, the government is diversifying the regional energy portfolio through the exploration of geothermal sources. A Memorandum of Understanding (MoU) has been signed with Geo Tropi India Private Limited for the specific purpose of exploration and development of geothermal power projects within Himachal Pradesh.

Sector Capacity Data: Current State Status

Himachal Pradesh possesses hydropower resources representing approximately 25% of India’s national potential. The following data details the current status of the state’s hydropower landscape as of June 2026: