Uhal Project Generates ₹200 Crore Revenue, Boosts Himachal’s Clean Energy Push

June 26, 2026

The Uhal Stage-3 Hydroelectric Project located in Joginder Nagar, Mandi District has become a significant milestone for the power sector of Himachal Pradesh. After facing technical and financial challenges for a long time, the project is now operating at full capacity. This is estimated to generate clean energy as well as income of about Rs 200 crore per year.

The project has so far generated about 465 million units of electricity. In the financial year 2024-25, about 25 million units of electricity were generated during the two-month operation. Subsequently, production increased to 345 million units in 2025-26. At the same time, about 95 million units of electricity have been generated so far in the current financial year. The annual target of the project is to generate 390 million units of electricity.

Necessary financial resources were arranged for the smooth launch of the project. A loan of about Rs. 185 crore was provided under this scheme, which led to completion of the remaining repair and restoration works. Also, the reduction in interest rate on loan is estimated to save the project around Rs. 30 crore per annum.

With regular power generation and revenue, the process of repayment of principal and interest of the project loan has also started. Due to this, its financial position is continuously strengthening. The Himachal Pradesh government will get 13 per cent of the income from the project. This is expected to generate additional income of about Rs. 25 to 30 crore every year to the State, which will be used for various developmental and public welfare works.

According to the project management, the major reason for falling short of the production target last year was the shutdown of the Shanan Hydroelectric Project for almost a month, which did not make the required water available for the Uhl project. Despite this, the production has registered a steady improvement.

The Uhal Stage-III Hydroelectric Project is today playing an important role in increasing the energy efficiency of the state, encouraging clean power generation and strengthening the economic condition of the state.