Himachal Pradesh Power Corporation Limited (HPPCL) has received approval from the environmental appraisal committee of the ministry of environment and forests for the construction of Renuka dam in Himachal Pradesh. The proposed multi crore hydropower project will provide drinking water to Delhi. The Renuka dam on Giri River will offer a storage capacity of 542 million cubic meters of water and an installed power capacity of 40 megawatt and will supply Delhi with an additional 275 MGD of water.

The centre and the state have entered into an agreement for this project.

Tarun Kapoor MD of HPPCL said that The revised project cost of INR 2,700 crore has been submitted to the government and is awaiting the sanction. The Centre has approved INR 2,200 crore as of now for the proposed dam to be built on a tributary of the Yamuna in Sirmaur district of the state. The Centre will provide 90% of the project cost and the rest 10% by the beneficiary state which draws water through the dam.

Kapoor said that We will float tenders by the end of February and are likely to award by mid July. Land acquisition process is in progress and is expected to complete by the end of March. Work on the dam is expected to begin soon and will be implemented for a period of 5 years. Delhi Jal Board has provided INR3 billion to the state government for acquisition of land.

The environmental clearance is expected by end of January or early February 2009 and state forest clearance in 3 months. A part of the Renuka wildlife sanctuary is expected to be submerged. The forest department has asked Himalayan Forestry Research Institute to prepare the plan for afforestation and wildlife sanctuary.

As per the agreement between the government and the centre, the state will install electrical and mechanical equipment, including turbine generators and the Centre would provide financial assistance.