The Central government on Wednesday, November 4, approved an investment of ₹1,810.56 crores for the 210 megawatts (MW) Luhri Hydro Electric Power Project in Himachal Pradesh.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved the funds for the project that will be located in Himachal's Shimla and Kullu district, reported BusinessLine.
The power project will be reportedly implemented by Satluj Jal Vidyut Nigam Limited (SJVNL) on the Build-Own-Operate-Maintain (BOOM) basis in next five years and has been estimated to generate 758.20 million units of electricity a year.
"Both the Government of India and the Government of Himachal Pradesh will offer active support to the project with the former providing a grant of ₹66.19 crores for enabling infrastructure," said Information & Broadcasting Minister Prakash Javadekar while announcing the decision during a press conference.
"The Luhri Stage-I Hydro Electric Project shall be commissioned within a span of 62 months. The power generated from the project will help in providing grid stability and will improve the power supply position," he added.
He also mentioned that the project would lead to a reduction of 6.1 lakh tons of carbon dioxide from the environment annually, thereby improving the quality of air besides generating renewable energy.
The minister also said that it would also create job opportunities for around 2,000 people and free electricity worth ₹1,140 crores for the state during the 40-year life cycle of the project.
"The project-affected families will be provided with 100 units of free electricity per month for 10 years," stated an official statement.
Union Home Minister Amit Shah hailed the centre's decision for giving its nod to the hydropower project.
In a tweet, the Home Minister said, "Big gift to the people of Himachal from PM @NarendraModi. As Modi govt has approved 210MW Luhri Hydro Power Project worth Rs 1810 crores in today's cabinet. This clean energy project will help in reducing pollution and generating huge employment opportunities in the region."