Unfavourable conditions severely affected hydro power generation in the state during 2012-13 with the country’s largest Nathpa Jhakri project producing 833 million units (MU) less compared to the last financial year. It was for the first time since 2006-07 that the project missed the generation target set by the Union Ministry of Power in the memorandum of understanding (MoU) for the year.

A delayed monsoon coupled with a prolonged and relatively harsh winter resulted in low discharge in the Sutlej for most part of the year leading to a steep decline in generation.