SJVN may be given cancellation notices for 2 power projects

Pratibha Chauhan

Shimla, May 31

The state government is reportedly contemplating issuing notices for the cancellation of Luhri and Dhaula Sidh hydropower projects allotted to SJVN Limited during the previous regime.

Sources said the notices could be issued in case of the 66-MW Dhaula Sidh project in Hamirpur district and 210-MW Luhri project (stage I) in Kullu. The delay in the start of work at the 780-MW Jangi Thopan Powari project in Kinnaur district has also irked the government.

The delay in signing the implementation pacts for the past around 18 months in case of the two projects is being cited as one of the reasons behind the decision to issue cancellation notices.

Chief Minister Sukhvinder Singh Sukhu has said that the state’s interests were compromised by deferring the provision of free power royalty that Himachal was to get from these two projects.

“The SJVNL has been dilly-dallying in signing the implementation agreement for the past some time, besides indicating its reluctance on several clauses, including giving 70 per cent jobs to Himachalis,” sources said.

In case of the Jangi Thopan Powari project, the SJVN Limited has not undertaken much work on the pretext that the locals have been opposing the project. The estimated cost of the Dhaula Sidh project has been pegged at Rs 688 crore. The MoU for the Luhri project was signed on November 7, 2019.

It was after a 12-year legal battle that the Jangi Thopan Powari project was allotted to the SJVNL in October 2018 on “build, own, operate and transfer” basis for 70 years.

The delay of over 12 years also resulted in the capacity of the project getting reduced from 960 MW to 780 MW due to decrease in water flow.

The reason

• The 66-MW Dhaula Sidh project in Hamirpur district and the 210-MW Luhri project (stage I) in Kullu may be issued cancellation notices
• Delay in signing the implementation agreements for the past around 18 months is being cited as the key reason behind the move
• Both projects were allotted to SJVN Limited during the previous regime