Himachal to sell power to Tamil Nadu

Himachal Pradesh government will sell hydel power to Tamil Nadu for the first time this summer, a top official said here on Tuesday.

Normally, Himachal sells most of its power to the northern grid but this is the first time it will supply it to a southern state at a competitive price. According to an agreement signed between the two state governments (HP & TN) recently, Himachal was to start supplying power from April 1 this year.

State power secretary, Ajay Mittal, confirmed on Tuesday that an agreement had been signed between the two states recently. But the supply has not started so far as there is no surplus power yet.

Officials say the Himachal Pradesh State Electricity Board (HPSEB) is currently generating 15.7 million units (157 lakh units) of hydel power, whereas it needs 16.5 million units. They further add that as the summer approaches and the snow melts rapidly raising water level in the river, the power generation in the state would increase.

Unlike states with warmer climate, power consumption in summer falls in the hill state even though the amount of power generated increases. The surplus power will then be sold to Tamil Nadu at a competitive price, which is not being disclosed by officials.

Himachal Pradesh already has a 'backing' agreement with neighbouring Haryana and Punjab. During summers, Himachal supplies them with surplus power, while in winter when the demand rises the two states return the power. The primary source of power for HPSEB are its hydel projects spread aross the state. Added to this is the power and income it makes from the equity and royalty it has in private hydel projects in the state.