Mandi (Kameshwar Sharma): The Uhl Phase 3 Hydropower Project Himachal has emerged as one of the most important energy projects in the state. After facing years of technical and financial challenges, the project now operates at full capacity.
As a result, it produces clean energy and generates strong revenue for Himachal Pradesh. Moreover, it stands as a key example of improved financial and administrative management under the current leadership.
Strong Power Generation Performance
The Uhl Phase 3 Hydropower Project Himachal has generated around 465 million units (MU) of electricity so far.
In the financial year 2024–25, the project produced nearly 25 MU during two months of operation. After that, production increased significantly to 345 MU in 2025–26.
Meanwhile, the project has already produced about 95 MU in the current financial year. It aims for an annual target of 390 MU, and officials expect to achieve it.
Financial Stability and Revenue Growth
The project now earns nearly ₹200 crore annually based on an average power rate of ₹5 per unit. In addition, rising electricity prices may further increase future earnings.
Moreover, the project will provide 13% of its revenue directly to the Himachal Pradesh government. This will generate an additional ₹25–30 crore every year for public welfare and development work.
Government Support and Financial Restructuring
The project regained momentum after strong intervention by the state leadership. In March 2023, the Chief Minister reviewed the project and ordered completion of pending works.
Furthermore, the government arranged a low-interest loan of around ₹185 crore through KCC Bank. This helped complete repair and restoration work.
In addition, authorities reduced the interest rate on loans from the Power Finance Corporation. As a result, the project will save nearly ₹30 crore annually.
Debt Repayment and Future Stability
The project has now started repaying both principal and interest. Therefore, its financial condition is improving steadily.
Officials say that the project will become more profitable in the coming years. Moreover, consistent production will further strengthen its revenue base.
Conclusion
The Uhl Phase 3 Hydropower Project Himachal shows how strong planning and coordination can revive long-pending infrastructure.
Overall, the project strengthens energy self-reliance, increases state revenue, and creates long-term development opportunities for Himachal Pradesh.
Key Points – Uhl Phase 3 Hydropower Project Himachal
- Major energy project fully operational: Uhl Phase-3 Hydropower Project in Joginder Nagar, Mandi district, has now started working at full capacity after overcoming long technical and financial hurdles.
- Strong electricity generation: The project has produced around 465 million units of electricity so far, including 345 MU in 2025–26 and 95 MU in the current financial year.
- High revenue generation: Based on current tariff rates, the project earns nearly ₹200 crore annually, strengthening Himachal Pradesh’s energy-based income.
- Government support improved finances: Loan restructuring through KCC Bank and reduced interest rates from PFC have improved financial stability and may save around ₹30 crore annually.
- State benefits and future growth: The project contributes 13% revenue share to the state and is expected to meet its 390 MU annual target, boosting energy self-reliance and development.
