Himachal Pradesh Cancels 172 Stalled Small Hydro Projects

31 Jul 2025 CW Team

The Himachal Pradesh Cabinet, chaired by Chief Minister Sukhvinder Singh Sukhu, has approved the cancellation of 172 small hydro projects (each below 5 MW capacity) due to prolonged construction delays. These projects, under the Himachal Pradesh Energy Development Agency (HIMURJA), will be re-advertised, a senior government official confirmed.

In a bid to streamline future allotments, the Cabinet also approved a uniform free power royalty rate of 12 per cent, with an additional 1 per cent allocated to the Local Area Development Fund, for all future hydro projects up to 5 MW capacity.

In a parallel move, the state also cancelled 22 hydroelectric projects above 5 MW that had been previously allotted by the Directorate of Energy. These projects were revoked as the developers had failed to sign implementation agreements or obtain necessary clearances and no-objection certificates (NOCs) from various departments.

“We had issued show-cause notices to the concerned firms. While some responded, our initial assessment found that many failed to secure required approvals or enter into agreements with the state government,” said an official from the Department of Energy.

The move is aimed at unlocking stalled infrastructure and re-inviting fresh participation to boost the state’s renewable energy sector.

News source: The Indian Express

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