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Kishau Multipurpose Project: Himachal says wont bear costs, puts forth 3 conditions before final decision

The state placed three key requirements before the central government: full central funding of the project, the release of around Rs 4,000 crore in pending arrears of the Bhakra Beas Management Board (BBMB) and the settlement of long-pending issues regarding the oustees of the Pong Dam and BBMB projects.

These demands were placed at a Upper Yamuna Board meeting held in New Delhi on December 13, under the chairmanship of Union Home Minister Amit Shah. Representatives from Uttarakhand, Punjab, Haryana and Delhi were also present at the meeting.Ammonia levels in Yamuna remain high; Wazirabad WTP still operating below capacity despite improving water supply. (File)
Written by: Saurabh Parashar
3 min readShimlaDec 15, 2025 10:16 PM IST First published on: Dec 15, 2025 at 10:14 PM IST

Himachal Pradesh government on Saturday told the Centre that it will not bear any financial expense for the Kishau Multipurpose Project’s construction on the Tons River, proposed on the Himachal Pradesh-Uttarakhand border, in New Delhi. The state placed three key requirements before the central government: full central funding of the project, the release of around Rs 4,000 crore in pending arrears of the Bhakra Beas Management Board (BBMB) and the settlement of long-pending issues regarding the oustees of the Pong Dam and BBMB projects.

These demands were placed at a Upper Yamuna Board meeting held in New Delhi on December 13, under the chairmanship of Union Home Minister Amit Shah. Representatives from Uttarakhand, Punjab, Haryana and Delhi were also present at the meeting.

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Himachal Pradesh Secretary (Energy) Rakesh Kanwar was among those who attended the meeting. Kanwar told The Indian Express, “The state conveyed its concerns regarding the Kishau project, which is proposed in Sirmaur district on the Tons River, a tributary of the Yamuna, adjoining Uttarakhand.”

He clarified that Himachal has not opposed the project but has placed its three requirements before the Centre. He said states such as Punjab, Haryana, Uttar Pradesh and Delhi would be the major beneficiaries of the project, while their financial contribution to the expenditure remains unclear. Kanwar also said that Himachal would be the worst affected in terms of displacement of villages and people.

The energy secretary also said the project is proposed under a 90:10 funding formula — the Centre would bear 90 per cent of the cost, while Himachal and Uttarakhand would together bear the remaining 10 per cent. “We stressed that our financial share should also be borne by the Centre. A representative from Uttarakhand was also of the view that if Himachal is granted such a relaxation, Uttarakhand should be given the same,” Kanwar said.

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Sources said the 10 per cent cost to be shared by Himachal and Uttarakhand amounts to Rs 1,536 crore.

The proposed multipurpose project site in Himachal Pradesh lies in Sirmaur district, around 50 km upstream of Dakpathar and 10 km upstream of the existing Ichhari Dam. The project is estimated to cost around Rs 11,500 crore and is expected to generate 660 MW of power.

As per a feasibility study conducted in 2020, around 1,498 hectares of land, including eight villages in Himachal Pradesh with about 2,092 people are likely to be impacted. In Uttarakhand, about 1,452 hectares across nine villages and an estimated 3,406 people are likely to be impacted. The total submergence area is estimated at 2,950 hectares. The memorandum of understanding for forming a joint venture to execute the project was signed between Himachal Pradesh and Uttarakhand in June 2015.

Saurabh Parashar is an Assistant Editor at The Indian Express, pri... Read More

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