30-07-2025
- Business
- New Indian Express
Himachal cabinet cancels 172 stalled hydro projects
CHANDIGARH: The Himachal Pradesh Cabinet on Tuesday approved the cancellation of 172 small hydro projects, each below 5 MW capacity, under the Himachal Pradesh Energy Development Agency (HIMURJA), where construction had allegedly stalled for an extended period.
The state government will re-advertise these projects, as per the decision taken at a cabinet meeting. It was also decided to apply a uniform free power royalty of 12 per cent, along with an additional one per cent for the Local Area Development Fund, for all hydro projects up to 5 MW that will be allotted in the future.
The cabinet further approved the cancellation of 22 hydroelectric projects above 5 MW, previously allotted by the Directorate of Energy, where implementation agreements had not been signed. For the remaining projects, developers have been allowed time until 5 August 2025 to submit replies to the notices served.
A committee will be constituted to negotiate with 14 project developers for an out-of-court settlement to refund the principal amount of the upfront premium, without interest.
Amendments were also approved to the Himachal Pradesh Minor Minerals (Concession) and Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2015. Under the revised provisions, contractors or agencies engaged in road cutting will now be permitted to use the generated material during the de-siltation and maintenance of reservoir projects for captive purposes.
