The 800 MW Parbati Hydroelectric Project-II (PHEP-II) set up by the NHPC in the Sainj valley of Kullu district promises substantial financial benefits for the state government in form of royalty.
As per information, 37 crore units of electricity will be the share of the state, generating an annual revenue of around Rs 270 crore from the project that is set to be commissioned soon. This ambitious project, completed after nearly 25 years, is also expected to benefit the Central Government significantly. At present, trial power generation is underway through various turbines and is expected to continue until the first week of April.
All four turbines of the project are now operational, with each turbine capable of producing 200 MW of electricity. After the trials, the electricity generated will be distributed to 10 states and the Damodar Valley Corporation. The project not only promises substantial financial gains for the Central Government but is also set to provide the state government with an annual income of around Rs 270 crore, based on the current electricity rates.
For a state grappling with financial challenges, the project offers a much-needed revenue boost. For about 40 years, families affected by the project, including those displaced, will receive a monthly compensation of 1 per cent royalty from the total production, estimated at Rs 22 crore every year, based on the current rates. This compensation is expected to foster development in several panchayats in Sainj, Manikaran and Garsa valleys, directly benefiting thousands of families.
Originally slated to be completed in 2009 at a cost of Rs 3,919 crore, the project faced natural obstacles, leading to cost escalation to Rs 13,045 crore — an increase of Rs 9,126 crore. Despite these challenges, the Parbati project has contributed to local development in the past.
The NHPC has also been actively engaged in various Corporate Social Responsibility (CSR) activities, contributing to health, education and disaster relief efforts in the district. Besides, the company has provided generous funding and supported numerous NGOs and social projects.
However, with progress comes various challenges. People living near the Siund powerhouse have raised concerns about the noise generated by the electric turbines, which has disrupted peace in five villages. Around 60 families from Jeeva, Khadoha, Rumra, Vagidhar and Daran villages have reported that the turbine noise has affected their daily lives. The villagers have urged the NHPC to address these issues promptly and alleviate the hardships faced by the affected communities.
