Himachal clears Rs 2,500 crore hydel project

The Himachal Pradesh government on Friday cleared the 400-MW Rampur hydro-electric project, to be executed by the state government and public sector Satluj Jal Vidyut Nigam Ltd (SJVNL).

The project is expected to be built at Rs 2,500 crore. The state government will have a 30 per cent equity.

The government also approved the allotment of 27 small hydro projects, with an aggregate capacity of 88 MW, to 27 private sector companies. These allotments are expected to bring an investment of Rs 528 crore over the next five years, besides bringing in royalties for the state government at 10 per cent after 15 years of commissioning.

"The positive benefits of such projects include the opening up of the hinterland, economic growth of far-flung areas, and the rise of business opportunities for the local population," said an official spokesman.

The Cabinet also gave approval for terminating the agreement on the 15-MW Neogal hydro electric project in Kangra, signed with Om Power Corporation Ltd.

The company has failed to start the construction of the project despite an opportunity given to it earlier.

Himachal Pradesh has a hydel power potential of 25,000 MW, which is about a quarter for the country. But only a fraction of this has been tapped so far, largely due to shortages of funds.

The 1,500-MW Nathpa Jhakri project, the largest hydel project in the country, started operation on May 18 this year, with all its six units (250 MW each unit) starting production. It has helped to a large extent in reducing the power deficit of North India.

However, due to the looming threat of the bursting of a lake in Tibet, the project suffered a loss of over Rs 80 crore this, official sources said.

The Rampur project will be the next stage of the Nathpa project. Both are hydel projects on the Sutlej.