SHIMLA-26 April, 2026
Himachal emerging as leader in Green Energy - Thakur Sukhvinder Singh Sukhu
- Development of small hydropower projects in focus
- Government takes lead in tapping solar energy, alternative sources of green energy
Himachal Pradesh has immense potential for electricity generation in the hydropower and solar energy sectors. By harnessing this potential, the state could meet most of its own energy requirements and also benefit other states, becoming an example of energy self-reliance, sustainable development and environment conservator.
The state's annual energy consumption is approximately 13,000 million units. Chief Minister Thakur Sukhvinder Singh Sukhu has set a target to meet more than 90 percent of this demand from renewable sources. To achieve this, under the visionary leadership of the Chief Minister, the state government is actively promoting the development of small hydropower projects, solar energy projects and non-conventional energy sources.
In line with Thakur Sukhvinder Singh Sukhu's directions, the state government has accelerated the development of small hydropower projects - up to five MW capacity - in recent years. Over the past three years, seven small hydropower projects with a total capacity of 17.25 MW have been started, 12 projects with a of 23.80 MW have been completed and 18 projects with a capacity of 47.90 MW have been sent for approval.
Additionally, five projects of 12.65 MW have received technical approval, supplementary implementation agreements for capacity enhancement and other related approvals have been signed for seven projects of 25.7 MW. Another, 76 new applications for allocation of projects totaling 75 MW are being processed.
The Chief Minister has envisioned Himachal Pradesh as a green energy state. To achieve this, effective policies have been initiated and successfully implemented and as a result various solar energy projects have been developed over the past three years. The state government has decided to establish five solar parks with a total capacity of 501 MW and various solar energy projects of 212 MW. A 200 MW solar power plant would also be set up on barren land in Damtal of Kangra district.
During the present government's tenure, several solar energy projects have been initiated and completed in record time, including the Pekhubela, Bhanjal and Aghlor.
A total of 728.4 MW solar projects have been allotted to Himachal Pradesh Power Corporation Limited. Of these, 120 ground-mounted solar projects with a capacity of 150.13 MW have already been initiated.
To ensure transparency, the state government has adopted a "First Come, First Serve" policy for allocating solar projects ranging from 250 KW to five MW. The electricity generated from these projects will be purchased by the Himachal Pradesh State Electricity Board. So far, 547 investors have been allotted 595.97 MW of ground-mounted solar projects and power purchase agreements for 403.09 MW have already been signed.
The state government has launched the Green Panchayat Programme, under which 500 KW ground-mounted solar projects are being installed in all of the panchayats across the state. The 20 percent of the revenue generated from these projects will be used to provide assistance to orphans and widows in the respective Gram Panchayats.
The state government is also working to ensure uninterrupted electricity supply in tribal areas. For this, Battery Energy Storage Systems of 400 KW each are being installed in Hilor and Dharwas villages of Pangi in Chamba district. On the directions of the state government, One KW solar off-grid systems have been installed in 148 households of remote villages, namely Mudh, Langza, Hikkim and Komic, of Lahaul and Spiti district under the Corporate Social Responsibility. A 2 MW solar power plant has been established in Kaza.
Under the state government's policy to promote alternative energy resources, special efforts are being undertaken to establish green hydrogen plants, compressed biogas units and harness geothermal energy. In Chamba, the first green hydrogen-based mobility station is being set up and a one MW green hydrogen plant is being established in Nalagarh of Solan district.
Additionally, in Neri of Hamirpur district, an initiative has been taken to set up the country's first state-supported biochar plant.
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Himachal seeks Rs. 1350 crore central share under Urban Challenge Fund
PWD and Urban Development Minister Vikramaditya Singh participated in a meeting held under the chairmanship of Union Minister for Housing and Urban Affairs Manohar Lal Khattar at New Delhi last evening. Detailed discussions were held on Urban Challenge Fund during the meeting.
Vikramaditya Singh said that the State Government has proposed projects amounting to approximately Rs. 5,400 crore under the Urban Challenge Fund to create robust infrastructure and vibrant economic hubs in urban areas of the State. He requested the earmarking of Rs. 1,350 crore to Himachal Pradesh as the Central Government share, keeping in view the small size and limited revenue base of Urban Local Bodies. He added that private sector participation in re-development projects remains limited due to terrain-related constraints and lower commercial viability. He also demanded specific relaxations for hill and special category states like Himachal Pradesh under the Urban Challenge Fund keeping in view these challenges.
He stressed upon suitable relaxation in the population criteria prescribed for coverage, and modification of the funding pattern by reducing the mandatory requirement of mobilizing 50 percent of the project cost through bonds, bank loans and PPPs. He urged for considering higher proportion of Central assistance or viability gap support while finalizing the modalities, keeping in view the limited financial capacity of Urban Local Bodies and low private sector participation in hill regions.
Vikramaditya Singh also sought the support of the Government of India in facilitating resource mobilization for the State under the Urban Challenge Fund, including enabling access to institutional finance and innovative funding mechanisms. Further, support in attracting private investment and credible developers through appropriate policy backing and handholding would be invaluable for successful project implementation, he added.
He said that the Urban Challenge Fund is of critical importance for a hill State like Himachal Pradesh where nearly 90 percent of the area is mountainous and about 67 percent is under forest cover, leaving limited land for development. Urbanization is further constrained by fragile ecology and rapidly rising tourist footfall which places immense pressure on limited infrastructure, he said.
He said that the Urban Challenge Fund is not merely financial support but a key enabler for developing resilient growth centres that support tourism, generate employment and improve quality of life.
The Minister apprised that the State Government has prepared a set of integrated, climate-resilient and tourism-oriented urban infrastructure projects for support under the Urban Challenge Fund which include decongestion and redevelopment of core areas. These include peripheral CBD development, smart parking, skywalks and heritage façade improvement.
He said that mobility solutions tailored for hill towns, such as hydraulic parking, lifts and escalators, which address land scarcity, are also proposed. He further said that redevelopment of traditional market areas is proposed to modernize infrastructure, improve safety and boost local economic activity, especially for small businesses. He added that underground utility ducting is essential for ensuring reliable services in disaster-prone hill regions while improving urban aesthetics and enabling future-ready infrastructure.
He said that State Government was also proposing an Integrated Wellness Eco-tourism Centre with a skywalk, aligning with India's wellness tourism vision while ensuring minimal ecological impact.
The Minister sought support for planned townships which will attract private investment, generate employment and reduce pressure on existing hill towns.
He said that urban governance was being strengthened through Integrated Command and Control Centres, which are critical for disaster response, traffic management and efficient delivery of citizen services.
The Minister said that State Government has also proposed cluster-based integrated solid waste management systems to scientifically process waste, protect the environment and sustain tourism.
The Central Government has requested Himachal government for prioritising the projects and Submitting projects worth 1,100-1,200 crores under which 25 percent amount will be released as central assistance and remaining fund state has to mobilise through PPP or loan from financial institutions.
Director Urban Development Dr. Neeraj Kumar also accompanied the Minister.