Kishau Dam MoU Signed Among Six States; Himachal To Get 211 MW Free Power, ₹600 Crore Annual Revenue

September 15, 2026

New Delhi: A Memorandum of Understanding (MoU) was signed in New Delhi on Monday among six states for the proposed Kishau Multipurpose Dam Project, located on the border of Himachal Pradesh and Uttarakhand. Officials from Himachal Pradesh, Uttarakhand, Delhi, Haryana, Rajasthan and Uttar Pradesh signed the agreement at an event presided over by Union Home Minister Amit Shah.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu also attended the ceremony and described the agreement as a proud moment for the state. He said Himachal Pradesh will receive 211 MW of free electricity and generate approximately ₹600 crore in annual revenue without making any investment in the project.

Sukhu said that during the previous BJP government, an arrangement had been made under which 90 per cent of the project funding would have been provided by the state, potentially placing a financial burden on Himachal Pradesh. He said the present government prioritised the state’s interests and safeguarded its resources.

Centre To Bear 90% Of Water Component Cost

Under the newly finalised arrangement, the Central Government will bear 90 per cent of the cost of the project’s water component, while the remaining 10 per cent will be shared among the six states.

Consensus among the six states was reached during a high-level meeting chaired by Amit Shah in June 2026. The agreement has cleared the way for the project, which had remained stalled for around 17 years due to differences over water sharing, cost sharing and other issues.

Himachal To Benefit From Power Component

The agreement includes a key provision concerning Himachal Pradesh’s share of water. Under the arrangement, the state’s allocated water will be made available to Delhi and Rajasthan.

In return, Delhi and Rajasthan will bear the cost of the electricity component corresponding to Himachal Pradesh’s share. This arrangement is expected to provide Himachal with financial benefits from the project’s power component against its allocated share of water.

660 MW Project To Store 1,324 MCM Water

The Kishau Multipurpose Dam is proposed on the Tons River, a major tributary of the Yamuna. The project site is located on the border of Sirmaur district in Himachal Pradesh and Dehradun district in Uttarakhand.

The project will have an installed power generation capacity of 660 MW, comprising four units of 165 MW each. The dam will create a live water storage capacity of approximately 1,324 million cubic metres (MCM).

The project is aimed at providing irrigation facilities to around 97,076 hectares, besides supplying water for drinking and industrial purposes. It proposes the construction of a concrete gravity dam approximately 236 metres high, with annual electricity generation estimated at around 1,379 million units.

Project Stalled Since 2008

The Kishau project was declared a National Project in 2008, but remained stalled for years because of unresolved issues related to water sharing, cost sharing and consensus among the participating states.

The way for the MoU was cleared after the six states reached an agreement in June 2026 following the Centre’s intervention.

Beyond power generation, the project is intended to increase water storage in the Upper Yamuna Basin, support irrigation and drinking-water requirements and increase the flow of clean water into the Yamuna. According to the Centre, the project will also contribute to efforts aimed at rejuvenating the Yamuna River.

With the MoU now signed, the construction process is expected to gain momentum. The project is particularly significant for Himachal Pradesh because the state is set to receive electricity and financial benefits, while its allocated share of water will be utilised by Delhi and Rajasthan.