BRS Alleges Corruption in Telangana’s ₹6,200 Cr Hydel MoU With Himachal

Hyderabad:Charges of corruption are being levelled over a memorandum of understanding (MoU) signed by Deputy Chief Minister and power minister Mallu Bhatti Vikramarka to build two hydel power projects in Himachal Pradesh – Seli and Miyar. The two proposed projects have a controversial history with two agencies, including power sector giant NTPC, pulling out citing technical difficulties.

The Rs 6,200-crore MoU was signed by Bhatti with Himachal Pradesh Chief Minister Sukhvinder Singh Sukku on March 29 in Simla. “This enterprise between two Congress led governments in Telangana and Himachal Pradesh smacks of corruption. There are serious questions that need to be answered by Bhatti and the BRS demands a White Paper on the projects, and a discussion in the Assembly,” senior BRS leader and former minister T. Harish Rao has said.

The projects, at Seli on the Chenab river and at Meyar on Miyar Nallah, a tributary of the Chenab, totalling 510, have had a difficult past. Two companies, Moser Baer, and later NTPC, had pulled out citing the near impossibility of taking up the projects.

Raising the prospects of huge corruption in the deal which he called a ‘fiasco’, Harish Rao asked: “Why is Telangana investing in the two projects totalling 510 MW when both projects were abandoned by major players like Moser Baer and NTPC? Why pursue projects deemed unviable for two decades?”

He said the projects still lacked detailed project reports, and the MoU Bhatti had signed was not approved by the TG Genco governing board. “Telangana has already paid `26 crore upfront to the Himachal government for the project, and is set to pay another Rs 26 crore. There are serious concerns on this deal,” Harish Rao said.

The Congress government in Telangana is steeped in financial mismanagement, Harish Rao said, adding that it claimed it has no funds to implement critical schemes. These include farm loan waivers, Rythu Bandhu, Rythu Bima, Aasara pensions, Mahalakshmi, student fee reimbursements, and employee pensions.

“How can a government that says it cannot secure loans, justify spending `6,200 crore in another state,” Harish Rao asked. “And that too on projects deemed as failures in the past by two companies.”

“When the state can’t afford basic welfare, launching a vanity project in Himachal is like wearing perfume on an empty stomach,” he added. “We have evidence of significant corruption in this deal and will soon expose the Congress government’s actions with full proof,” Harish Rao said.

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Mallu Bhatti Vikramarka after signing the MoU: Seli and Miyar hydel power projects will supply power to Telangana. Our government is committed to ensure energy security for the states. The MoU is in line with Telangana’s Clean and Green Energy Policy 2025, reflects our commitment to diversifying our energy portfolio. The partnership with Himachal Pradesh is a significant step toward securing cleaner, greener, more reliable power for our future.

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Seli, Miyar hydel projects located in Lahaul-Spiti region.

Seli awarded to Moser Baer in 2009, company pulled out in 2017.

Reasons cited by Moser Baer: Delays in DPR preparation, infrastructure issues, protests by people.

Moser Baer paid Rs 64 crore premium, HP government claimed the money.

Moser Baer went to court, which awarded it the money. HP government said it cannot pay. Court ordered auction of Himachal Bhavan in Delhi to raise funds to pay the company. Case still in court

Contract awarded in 2019 to NTPC. With no progress, contract cancelled in 2022.

BRS leader harish Rao says NTPC cited significant technical difficulties, including heavy snowfall in the region for over seven months a year.

Telangana expresses interest in January 2025 to build the projects

Awarded by nomination basis, MoU signed in March 2025.