The Himachal Pradesh government has given its consent to the execution of 775-mw hydro electric project which had been hanging fire for quite some time. A decision to this effect was taken at a meeting of the state cabinet under the chairmanship of Himachal chief minister, Prem Kumar Dhumal on June 4. The Cabinet has granted permission for signing of the memorandum of understanding for 775 mw Luhri Hydro-Electric Project with Satluj Jal Vidyut Nigam Limited (SJVNL) on 51:49 ratio equity participation.

With this decks have been cleared for execution of the project in which for the first time, the Himachal Pradesh government will have the highest equity participation (49%) in the project coming up on Satluj river, a little downstream to the 1,500-MW Nathpa-Jhakri hydel project of the SJVN. Though a decision on execution of the Luhri project in a joint venture was taken in September last year by the Virbhadra Singh government, the SJVN could not sign the MoU for the project implementation due to model code of conduct. Electricity Board has already given its green signal for execution of the mega project through a special purpose vehicle. The Project is expected to be commissioned by June 30, 2015 that is by. the end of XIth Plan. The Project is located in Shimla, Kullu and Mandi districts and is a ?run-of-the river type project to be developed to harness hydel potential of river Satluj between Kepu and Bindla villages.

Sources in the Himachal State Electricity Board told FE that according to Pre-Feasibility report prepared by the board, the dam site was earlier proposed to be located near village Nathan. The site had favorable geological conditions but the available head of tailrace outfall of Rampur and Luhri was not considered in keeping with the project as it could harness only about 465 mw power and the present dam site would enhance the installed capacity from 465 mw to 775 mw. This was conveyed to central electricity authority too by principal secretary, power, HP. The project has distinctive features such as a twin tunnel ending with inclined surge shaft.

After signing of the MoU, the process for obtaining mandatory clearances from the Centre and other agencies will start. The project is going to provide lot of benefits to the locals, besides meeting the nation?s demand for power.? ?The World Bank has already given nod to finance the Luhri project and 1.5% of the project cost would be utilised on the local area development for the benefit of the project-affected area,? sources said.