Himachal: Cancellation of 172 hydropower projects below 5 MW okayed

The Cabinet today approved the cancellation of 172 hydroelectric power projects below 5 MW capacity under the HIMURJA scheme, where the construction work was stalled even during the extended period. These 172 cancelled projects would be re-advertised.

The Cabinet decided to enforce a uniform free power royalty of 12 per cent along with an additional one per cent for the Local Area Development Fund for all hydroelectric power projects of up to 5 MW capacity to be allotted in the future.

It gave approval for the cancellation of 22 hydroelectric projects above 5 MW capacity, where agreements had not been signed, previously allotted by the Directorate of Energy. For the remaining projects, time up to August 5 was allowed for the submission of replies to the notices served.

It decided to constitute a committee to negotiate with 14 project developers for an out-of-court settlement for the refund of the principal amount of upfront premium without interest.

The government is keen that the condition of uniform free power royalty of 12 per cent along with an additional one per cent be imposed on the projects that will be re-allotted to ensure additional revenue generation.