The decision to put off the construction of the 480-Mw Pala Maneri and 400-Mw Bhairon Ghati projects was taken at a cabinet meeting presided over by Chief Minister B C Khanduri, a state government official said.
The indefinite fast by Agrawal since June 13 has put considerable pressure on the BJP government with the Sangh Parivar outfits also lending their full support.
However, the state government has made it clear that the decision on stopping the construction of the 600-Mw Lohari Nagpala project would be taken by the Centre since it was being constructed by the state-run NTPC.
Both the Pala Maneri and Bhairon Ghati projects were allotted to the state-owned Uttarakhand Jal Vidyut Nigam Ltd (UJVNL), which recently commissioned the 304-Mw Maneri Bhali-II. An investment of nearly Rs 5,200 crore was proposed in these two projects.
A UJVNL official described the move as a big setback to the company, saying it would jeopardize the government's initiative to become self-reliant in power.
