Shimla, Sep 29 (UNI) Himachal Pradesh will have 49 per cent equity participation in the 712 MW Luhri hydro-power project, which has been allotted to the Satluj Jal Vidyut Nigam (SJVNL) for execution.
The Luhri will be the first hydro-power project in the state in which the state government will have 49 per cent equity stake. In the 1,500 MW Nathpa Jhakri hydro-power the state governmnt has 25 per cent equity stake.
The decision allowing Himachal 49 per cent equity in the Luhri project was taken at a meeting between state Chief Minister Virbhadra Singh, Union Power Ministry's Joint Secretary J SKawale and SJVNL's CMD H K Sharma here last evening.
Speaking on the occasion, the Chief Minister said, the project being financed by the World Bank, the SJVNL would constitute a special purpose vehicle to ensure power generation in a time bound manner.
Considering that the SJVNL and the Himachal Pradesh were partners in executing hydro-power projects within and outside the state, the state government had adopted a liberal attitude towards allotment of projects to the company, he said.
He said about 1.5 per cent of the project cost would be spent on the development of the local area for the benefit of the project affected people, besides ensuring 15 per cent water discharge in all the seasons and 70 per cent employment to the local people.
Since it was run of the river project, no reservoir would be constructed, he said, adding that the company had been directed to follow ensure minimal loss to the area's ecology.
Mr Singh said the concept of equity participation was first conceived by his government and 25 per cent equity participation was sought in the 1,500MW Nathpa Jhakri Hydro Project, besides 12 per cent free power to the state.
With the completion of the project, the state government was generating additional financial resources for the development of infrastructure in the state, he added.