Himachal Pradesh to cancel allotment of hydropower projects for not starting construction despite receiving amnesty

Himachal Pradesh to cancel allotment of hydropower projects for not starting construction despite receiving amnesty

Aiming at increasing the share of Himachal Pradesh in various hydropower projects, the State Government is contemplating framing a new Energy Policy.

PTIUpdated: Tuesday, May 16, 2023, 10:24 PM IST
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Allotments of hydropower projects that have not started construction work despite taking one-time amnesty should be cancelled immediately and a fresh advertisement should be published, said Chief Minister Sukhvinder Singh Sukhu on Tuesday.

Taking a serious note of central Public Sector undertakings (PSUs) for not signing pre-implementation and implementation agreements to set up hydropower projects, he directed the energy department to issue notices to such PSUs, a statement issued here said.

Presiding over a meeting of the Energy Department here late on Monday evening, he said, "Efforts would be made to increase the State's share in those projects which have recovered its cost, for which correspondence would be initiated with the Central Government and other PSUs."

He said that for all upcoming hydel power projects, the land would be given for a 40 years lease as per the policy of government. Apart from this, he also directed to simplify the process of providing NOCs for the construction of hydropower projects.

Aiming at increasing the share of Himachal Pradesh in various hydropower projects, the State Government is contemplating framing a new Energy Policy, said Chief Minister.

Under the new policy, the provision of deferment of free power royalty will be completely abolished in future. There would be a provision to give 15 per cent share to the state government for the first 12 years, 20 per cent for the next 18 years and 30 per cent for the next 10 years, he said in a statement issued here.

So far, there is a provision of 12 per cent for the first 12 years, 18 per cent for the next 18 years and 30 per cent for the next 10 years, he added.

Sukhu said that 172 hydropower projects of 11,149.50 MW capacity have been commissioned in the State, while 58 projects of 2454 MW capacity were under construction.

He said that there should not be unnecessary delay in the hydropower projects being constructed through various Undertakings of the State Government and the Energy Department should develop a mechanism to monitor them.

He said that delay in the construction of projects causes financial loss to the State coffers. The Directorate of Energy would be strengthened and artificial intelligence would also be used to improve the functioning of the department, he added. 

The Chief Minister also reviewed the construction of solar projects being set-up in the State and directed to speed up the construction work. He said that the State Government has set a target of starting 500 MW solar power projects this year and the department should work earnestly in this direction.

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