The Genesis of the Crisis
The roots of this crisis date back to 2009, when the Himachal Pradesh government awarded a 320 MW hydropower project in the remote Lahaul and Spiti districts to Seli Hydro Company. The project, intended to boost the state’s energy capacity, required essential infrastructure and logistical support from the government. Despite the agreement, these commitments were not met, leaving the hydro company unable to proceed.
In 2017, the company filed a writ petition in the High Court, citing its inability to execute the project due to the state’s failure to provide basic facilities. The court ruled in the company’s favor, ordering the Himachal government to refund ₹64 crore in upfront charges with 7% interest. It also directed the Principal Secretary of Energy to investigate the role of officials involved in the lapse and to recover the dues from those responsible.
Mounting Dues and Court Intervention
The dues, originally set at ₹64 crore, have ballooned to ₹150 crore due to interest accumulated over the years. The Congress-led government’s continued defiance of the court’s orders has exacerbated the situation, culminating in the attachment of Himachal Bhavan. This landmark ruling serves as a stark reminder of the cost of administrative inaction and disregard for judicial directives.
Political Repercussions
The ruling has triggered a political storm, with the BJP launching a scathing attack on the Sukhu administration. BJP national spokesperson Shehzad Poonawala accused the Congress government of gross economic mismanagement, citing the Himachal Bhavan attachment as a symbol of administrative collapse.
How did it go unnoticed?
Himachal HC has reportedly issued order attaching Himachal Bhavan at Mandi House in Delhi after CONgress State Govt failed to pay electricity dues amounting to ₹150 Crore.
Maharashtra….be aware. Vote wisely. Pura Maharashtra bech dalenge Yeh log if… pic.twitter.com/L6J7r0tTy9
— BhikuMhatre (@MumbaichaDon) November 19, 2024
“This government cannot even pay electricity dues while the state’s finances sink deeper into crisis,” said Poonawala. He mocked the administration for its preoccupation with trivial matters. He was referring to a recent controversy involving missing cartons of samosas at an official event.
BJP leader CR Kesavan also criticized the Congress leadership, blaming the crisis on what he termed “reckless and unviable economic policies” introduced under Rahul Gandhi’s vision. “This is not just a financial issue; it’s a reflection of poor governance and misplaced priorities,” he added.
Government’s Defence Himachal Bhavan
Chief Minister Sukhvinder Singh Sukhu defended his administration, citing the 2006 energy policy under which upfront premiums were fixed as part of hydropower project bids. He emphasised that the matter had undergone arbitration, which the government contested in the High Court. Despite these efforts, the financial liability remains unresolved, casting doubt on the government’s ability to effectively manage disputes and deliver on commitments.
A Sobering Moment for Himachal
The attachment of Himachal Bhavan, a symbol of the state’s presence in the capital. Beyond the political rhetoric lies a troubling reality. Governance failures have cost the state its credibility and its financial stability. The High Court’s directive to investigate and hold officials accountable may be a step toward restoring trust, but the damage to the state’s reputation will not be easily undone.
As the case moves toward its next hearing on December 6, the Sukhu administration faces a critical test. Will it rise to the challenge of resolving this crisis, or will the state’s financial woes deepen further? The eyes of the nation are on Himachal Pradesh, waiting to see if lessons will be learned from this grim chapter.