Himachal Pradesh cabinet has approved to assign 13 hydro electric projects to independent power producers (IPPs). The projects will have combined capacity of 1,583.50 megawatt (MW). This will bring INR3.17 billion as upfront premium to the state exchequer besides additional incentive of free power, over and above the fixed 12% free power, ranging between 13.13 to 26.11% in consonance to the terms of the new power policy of Himachal Pradesh.

Projects include Riyoli/Dugali 420 MW; Saili, 320 MW; Duggar 236 MW; Saach Khas 149 MW; Miyar and Khoksar 90 MW each; Tingret 81 MW; Mane Nadang 70 MW; Lara 60 MW; Kuling Lara 40 MW; Siyul 13 MW; Kilhi Bahal 7.5 MW; and Shalvi 7 MW.

The upfront premium will not be charged from the state domiciled IPPs, upto 5 MW, in view of the development of entrepreneurship amongst the educated youth of the state in power sector. But, they will be required to provide free power to the state as per the power policy provisions. The government has also given go ahead for the allotment of 27 self identified dydro electric projects with total capacity of 81.90 MW in private sector on built, own, operate and transfer basis.

Execution of 19 small hydro electric projects, having total capacity of 76.30 MW has been permitted, under state sector by HIMURJA (Himachal Pradesh energy development agency) which includes, Kothi Stage-II 1.5 MW, Lower Sumez 3 MW, Tauhuk 3 MW in district Kullu; Sechigad 3.8 MW, Kareri 5 MW, Supin 5 MW, Tangnu 5 MW, Sundru 5 MW in district Shimla; Chanju Mehad 5 MW, Tanger Bhaled 5 MW, Chakka 5 MW, Kihan 5 MW, Mehled 4 MW and Hared 4 MW in district Chamba; Upper Neogal 5 MW in district Kangra; Sarogi 2.2 MW, Nakathana 2.1 MW in district Mandi; Jhaneti 2.5 MW in district Sirmour and Rupi (Tikada) 5 MW in district Kinnaur.

Chapter V, Clause XIII of the Hydro Power Policy-2006, has been amended for its more effective implementation.