NEW DELHI: The Union Cabinet approved the proposal of construction of 210 megawatt (MW) Luhri Stage-I hydropower project in Himachal Pradesh. According to an official statement, the Cabinet Committee on Economic Affairs (CCEA) was chaired by Prime Minister Narendra Modi. The CCEA approved Rs 1,810.56 crore for investment into the Hydro Electric Project, which will be built on river Satluj, situated in Shimla and Kullu districts. Government of India (GoI) is also supporting this project by providing grants worth of Rs 66.19 crore.
It is being estimated that the project will generate 758.20 million units of electricity annually. The power generated from the project will provide grid stability and strengthen the power supply position in the state. The project will be implemented by Satluj Jal Vidyut Nigam Ltd on Build-Own-Operate-Maintain basis. It has been receiving active support from GoI and the state government. Himachal Pradesh will receive free power worth around Rs 1,140 crores from the project during the 40 years of the life cycle of the project.
The project will add valuable renewable energy to the grid and reduce around 6.1 lakh tonnes of carbon dioxide from the environment annually. The official statement added that the construction activities of the project will result in direct and indirect employment for around 2,000 people and will continue contributing to the overall socio-economic development of the state. The government intends on providing 100 units of free electricity per month for ten years to the families which might get displaced or affected due to the project.