Shanta Kumar Criticizes Himachal Pradesh Budget, Advocates for Higher Hydropower Royalty

Former Himachal Pradesh Chief Minister Shanta Kumar criticized the state budget, calling for increased hydropower royalty and fiscal discipline. He highlighted the unchanged royalty rate of 12 percent despite rising electricity prices and urged an increase to 30 percent. Kumar also emphasized the need for reduced government expenditure and proposed a committee to identify cost-cutting measures. Additionally, he claimed that the Jogindernagar Shanan Power Project should belong to Himachal Pradesh under the Punjab Reorganisation Act.

Published Mar 24, 2026

Shanta Kumar criticized the Himachal Pradesh state budget, claiming it lacks initiatives for resource mobilization and expenditure reduction. He highlighted that the royalty on hydropower, fixed at 12 percent during his tenure, should be raised to 30 percent due to increased electricity prices.

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Kumar called for a state-level movement for this issue and asserted that the Jogindernagar Shanan Power Project should belong to Himachal Pradesh under the Punjab Reorganisation Act. He also emphasized the need to curb government spending and suggested forming a committee to identify unnecessary expenditures.