Himachal earns Rs 100 crore in 45 days as Uhl phase-3 power project gets going after 22 years

MANDI: The much-awaited Uhl-3 hydropower project, a 100-MW facility, has officially commenced operations, marking a significant milestone in Himachal Pradesh’s renewable energy sector.

Located on the Rana Neri Khad River in Mandi district, the project is expected to generate 392 million units of electricity annually, contributing an estimated Rs 200 crore in revenue to the state.

Project conceptualised in 2003

The Uhl-3 project was first conceptualised in 2003, but despite its strategic importance, the project faced multiple delays over the years.

Challenges such as infrastructural hurdles, financial constraints, and administrative roadblocks kept pushing its completion further. However, determined efforts by the present Himachal Pradesh government revived the project, leading to its swift execution and commissioning after 22 years.

Recognising the need for accelerated completion, the Himachal Pradesh government sanctioned ₹1,850 crore in immediate funding and provided a 100% no-default guarantee to ensure the project remained on track.

Continuous monitoring, along with strategic execution, played a vital role in achieving this long-pending milestone.

Fast-track completion and key developments

The construction for the 100-MW project was fully completed in December 2024. Following this, the water conductor system, spanning 11 km, was gradually filled to facilitate power generation.

The turbines were then connected to the water grid in a phased manner. The first turbine was connected on January 28, 2025; second turbine on February 8 and the third on February 17.

With all units in place, the plant successfully began generating electricity, producing 200 million units within just 45 days, leading to an estimated ₹100 crore revenue for the state.

Economic and environmental significance

The successful commissioning of the Uhl-3 project is another leap forward in Himachal Pradesh’s push for clean energy.

As a hydropower-rich state, Himachal Pradesh has been steadily expanding its renewable energy capacity, with projects like Nathpa Jhakri (1,500 MW) and Karcham Wangtoo (1,000 MW) already making significant contributions to the power grid.

With the addition of Uhl-3, the state strengthens its position as a leading hydropower producer, enhancing both energy security and revenue generation. The project also aligns with India’s sustainable development goals, reducing dependence on fossil fuels while creating employment opportunities in the region.

Milestone for Himachal Pradesh’s energy future

The completion of Uhl-3 after more than two decades stands as a testament to the state government’s commitment to infrastructure development and renewable energy expansion.

With Himachal Pradesh continuously harnessing its hydropower potential, projects like these pave the way for a cleaner, greener, and more energy-efficient future.

Munish Sood