Ukhand to be compensated if Loharinag hydel project is scrapped

Written by Press Trust of India | New Delhi | Updated: Jun 8 2010, 05:20am hrs
As an GoM meets on Tuesday to decide the fate of 600-mw Loharinag Pala hydel power project in Uttarakhand, the Centre has said the state would be adequately compensated in case the project is scrapped.

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.