HP cancels allotment of seven small hydro-electricity projects

Shimla: Acting tough against errant private power producers, Himachal Pradesh government has cancelled allotment of seven small hydro-electricity projects for non compliance of terms and conditions laid down in the MoU.

The decision to this effect was taken at a state cabinet meeting presided over by Chief Minister Mr Prem Kumar Dhumal here.

The power producers, whose allotment has been cancelled, would now have to forfeit their money and bank guarantee as the construction work cannot be started within the prescribed time frame, an official release said here on Wednesday.

The projects cancelled include Machhad-I, Machhad-II, Koot in district Shimla, Anu, Chennari and Bakhli in Mandi district and Moujhi-III in Kangra district, it added. It has been decided to readvertise the above projects to invite fresh proposals.

In other major decisions, the HP cabinet approved bringing 14,766 new old age, widows, handicapped and lepers under Indira Gandhi National Old Age Pension scheme from April 1, 2008, thereby raising the number of such beneficiaries in the state to 2,52,04 8 and disburse them Rs 105 crore annually as pension. The new pensioners shall be disbursed arrears worth Rs 4.5 crore for 10 months of the current financial year.