Firms not keen, 26 hydel projects scrapped in Himachal Pradesh

Tribune News Service

Shimla, May 10

The Himachal Government has cancelled 26 hydel projects after the respective companies showed no interest in executing these. The Cabinet, at its meeting yesterday, decided to give another chance to companies for completing formalities with regard to other 191 hydro power projects under the amnesty scheme.

RD Dhiman, Additional Chief Secretary, Power, said, “The companies allotted these projects had failed to sign agreements related to connection, long-term open access and power purchase.”

They have now been given time till July 31 to complete the formalities, he said. In case they fail to sign the agreements for reasons beyond their control, the Power Department has been authorised to give additional time. Dhiman said the Cabinet approved the cancellation of 26 hydel projects after the companies failed to come forward to seek benefit under the amnesty scheme.

There has been a decline in the revenue from the hydro-power sector, which had become a major source of income for the state two decades ago. The amnesty scheme was conceived to provide an opportunity to the power producers who could not execute the projects for one reason or the other, officials said.

There have been instances where power producers have offered surrender the projects. Many companies no longer view the sector as lucrative, said sources.

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