SHIMLA- Apart from proposing a three per cent raise in Himachal’s share in power projects under new power policy,  Chief Minister Sukhvinder Singh Sukhu here warned the hydro power project companies, which have not started construction work, that allotment of these projects should be cancelled immediately and a fresh advertisement should be published seeking fresh bids.

Taking a  serious note of delay in starting of construction work, Sukhu said  despite having taken one time amnesty, project companies have not started the work even after many years.

Presiding over a meeting of the Energy Department here late last evening, Chief Minister took a tough stand directing the Energy department to cancel  the allotment of projects of companies, which have not started the work  and new bids should be sought immediately.

CM further said the State Government has mulled to frame a new Energy Policy that would provide for more share to Himachal Pradesh in various hydropower projects.

As a matter of fact, most of the allotted power projects are  in landlocked Lahaul-Spiti, Kinnaur and Chamba districts, where locals are up in arms against the power projects, fearing onslaught on local ecology and culture and environment.

Interestingly,  300 MW Jispa Dam in Lahaul on Bhaga river, Kishau dam in Giri region  allotted to state government-run HP Power Corporation Ltd are other examples where work remains a non-starter more or less.

Tribals in Jispa are not allowing HPCL to take even a survey of the site. Jispa is a strategic dam project proposed to store water on the Chenab river as per  Indus Treaty signed with Pakistan and it involves no major displacement.  

CM  seemingly is treading a tight rope on the power projects as the state government's water cess on power projects has also  come under fire from the captains of industry, though people in general have hailed this decision aimed at earning revenue to fill state's empty coffers.  

However, CM said Power generation is  the main source of income for the State Government and would not be compromised by any loss to the State exchequer.

Chief Minister said under the new policy, the provision of deferment of free power royalty will be completely abolished in future.

He said that 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.

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

"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," said Sh. Sukhu.

He  added  that for all upcoming hydel power projects, the land would be given for forty years lease as per the policy of the government.

Chief Minister took a serious note of central PSUs for not signing pre-implementation and implementation agreements to set up hydro power projects.  He directed the Energy department to issue notices to them.

Apart from this, he also directed to simplify the process of providing NOCs for the construction of hydro power projects.

Sh. Sukhu said that 172 hydropower projects of 11149.50 MW capacity have been commissioned in the State, while 58 projects of 2454 MW capacity are  under construction.

He said that there should not be unnecessary delay in the hydro power projects. the Energy Department should develop a mechanism to monitor them.

He said that delay in construction of projects causes financial loss to the State coffers.

Directorate of Energy would be strengthened and artificial intelligence would also be used to improve the functioning of the department, he added.

Chief Minister also reviewed the construction of solar projects worth 500 MW this year.

Meeting was attended by Industries Minister, Harshwardhan Chauhan, Principal Advisor to the Chief Minister, Ram Subhag Singh, Chief Secretary, Prabodh Saxena, Principal Secretary to Chief Minister, Bharat Khera, Secretary MPP & Power, Rajeev Sharma, OSD to the Chief Minister, Gopal Sharma, Director Energy Department, Harikesh Meena and other senior officers were present in the meeting amongst others.