Government today approved setting up of a high-level committee headed by the Power Ministry to finalise compensation for NTPC's Loharinag Pala hydel project, which was scrapped over religious and environment issues.
"Cabinet Committee on Economic Affairs today approved the constitution of Empowered Committee headed by the Ministry of Power to finalise the financial compensation for the Loharinag Pala hydel project in Uttarakhand," an official statement.
The Ministry of Power will bear the expenses for compensation to NTPC and also for safety measures in line with the recommendations of the committee, the statement said.
The National Ganga River Basin Authority (NGRBA) decided in its meeting in November, 2010, to discontinue all under-construction hydro electric projects in the Bhagirathi in order to maintain continous flow of the river.
The 600 MW Loharinag Pala hydel project of NTPC was discontinued following the decision of NGBRA. The project site falling under the eco-sensitive zone will have necessary protection measures in terms of ecology.
It said compensation to NTPC will ensure that the company does not suffer any financial loss because of discontinuance of the project which it started implementing after obtaining all statutory clearances.
NTPC is currently executing over 1,300 MW of hydel projects in the country. It includes 800 MW Koldam, Himachal Pradesh, and 520 MW Tapovan Vishnugad, Uttarakhand.
