31-07-2025
Himachal cancels 172 hydro projects where construction is stalled
The Himachal Pradesh Cabinet Wednesday approved a proposal to cancel 172 small hydro projects of below 5 MW capacity where construction work has been stalled for an extended period. The state will re-advertise these projects that are under Himachal Pradesh Energy Development Agency, a senior official said.
'It has been decided to apply a uniform free power royalty of 12% along with an additional 1% for the Local Area Development Fund for all hydro projects up to 5 MW that will be allotted in the future,' an official said.
The decisions were taken in a meeting chaired by Chief Minister Sukhvinder Singh Sukhu. The Cabinet also gave its approval to cancel 22 hydroelectric projects above 5 MW, previously allotted by the Directorate of Energy, where implementation agreements have not been signed.
A Department of Energy official told The Indian Express, 'We had issued show cause notices to the firms, which were given the contact to establish 22 hydroelectric projects above 5 MW. Some of them had submitted their reply. As per our initial assessment, some of the firms failed to obtain permissions and NOCs from various departments. Moreover, the firms are yet to enter into Instrument of Agreeement with the state government'.
