The Himachal Pradesh government has decided to cancel allotment of seven small hydro electric projects for non compliance to the terms and conditions laid down in the memorandum of understanding signed by the independent power producers (IPP) and the state government. The projects cancelled include 3 megawatt (MW) Machhad-I; 2 MW Machhad-II; 5 MW Koot; in district Shimla; 2 MW Anu; 3 MW Chennari, 4.5 MW Bakhli; in Mandi district; and 2.5 MW Moujhi-III, in Kangra district.
The government intends to forfeit their earnest money and bank guarantee for not starting the project construction work within the prescribed time frame.
Fresh bids would be invited for these projects.
Policy guidelines for processing and allotment of self identified hydro electric projects were approved by the government. Any self identified hydro electric project will not be accepted till June 30, 2009. All the pervious cases will be finalized by this date.
Allotment letter will contain the condition that Himachal Pradesh State Electricity Board shall have right to first refusal for the power generated from all projects, except where the IPP intends to use it for captive consumption within the state.
The government decided to amend the Industrial Policy of the state by incorporating bio-technology as leading industry and providing various incentives, except exemption in the electricity charges. It has also been decided to adopt liberal attitude for transfer of industrial plots/sheds as per the Industrial Policy.