The final decision whether NTPC-owned Loharinag Pala will be scrapped or allowed to continue will be decided at the meeting, but on my part, I would like to assure that the state government will be adequately compensated if needed, union environment minister Jairam Ramesh said. However, he did not elaborate on the details of the proposed compensation. The issue would be discussed at a meeting headed by finance minister Pranab Mukherjee and attended by power minister Sushil Kumar Shinde and Ramesh besides other officials concerned.
The meeting would review the study of an expert panel comprising members from the Central Water Commission (CWC), environment ministry, IIT and NTPC on the possible environmental consequences of abandoning the project midway. The Uttarakhand government has been demanding that the hill state should be compensated with 2,000 mw of free power in lieu of scrapping of hydel projects.