CHANDIGARH: Punjab will purchase electricity from Himachal Pradesh for the next three years to meet its power requirements. Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced that a Power Purchase Agreement (PPA) will be signed between the two states soon.
Alongside the power deal, both states have also agreed to resolve their long-pending disputes through mutual dialogue. The proposed agreement is expected to generate additional revenue for Himachal Pradesh while helping Punjab strengthen its power supply infrastructure.
Describing the relationship between the two states, Chief Minister Sukhu referred to Punjab as the “elder brother” of Himachal Pradesh. He remarked that it is natural to have occasional differences and issues with an elder brother, but emphasized that all pending matters between the two states will be resolved through discussions and mutual communication. He expressed confidence that both governments will move forward to settle these disputes in a positive environment.
However, the Chief Minister did not disclose the specific volume of power to be purchased or the rates under the proposed agreement.
Himachal Pradesh is one of the leading hydroelectric power-producing states in the country, with over 170 large, medium, and small hydropower projects currently operational. Run by the central government, state government, and private companies, these projects contribute to the state’s total installed power generation capacity of around 12,000 MW. Hydroelectric projects account for more than 90 percent of this capacity. Additionally, the state is also expanding its solar energy projects. The implementation of the PPA on schedule is set to provide a major revenue boost to the state.
Punjab faces a sharp surge in electricity demand primarily during the summer months and the paddy sowing season. Although Punjab has access to thermal power, the central pool, and renewable energy sources, balancing demand and supply during peak seasons remains a significant challenge for the state.
