Large Dues and Stalled Settlements

Over 20 independent power producers have accumulated dues totalling Rs 1,177.89 crore to the Himachal Pradesh State Electricity Board, mainly for surveys, reports, and project investigations. The Baspa hydro project alone accounts for Rs 874.69 crore of these arrears.

Legal and Settlement Efforts

Chief Minister Sukhvinder Singh Sukhu has confirmed robust legal action: senior lawyers have been engaged to recover the sums and expedite cases at the Supreme Court, including high-profile cases on project reversion (Shanan project, Bhakra Beas Board) and hydro royalty claims (such as Rs 250 crore from JSW). The issue of overdue payment has persisted due to disagreements over interest rates and financial terms.

The state government is also seeking the return of projects upon completion of their 40-year terms—such as Baira Siul—asserting rights under the law and aiming to strengthen electricity revenues by bringing assets back under direct state control.

Economic Implications

Ensuring prompt payment and lawful project reversion is critical for the financial sustainability of Himachal Pradesh’s state utility. With green energy projects playing an ever-larger role, state boards need reliability in payments and partnership with project developers for the success of future schemes.

Conclusion

The recovery of these overdue payments will support both the fiscal health of the state utility and fair, sustainable hydropower development in Himachal.