Government to compensate NTPC for cancellation of 600MW project
23 Aug 2010
The government will duly compensate National Thermal Power Corporation (NTPC) for cancellation of the 600 MW hydro-power project at Loharinag Pala in Uttarakhand, power minister Sushil Kumar Shinde said today.
The centre announced the scrapping of the 600 MW Loharinag Pala project on the Bhagirathi River within a month of approving construction of the dam. (See: Government does a volte-face, scraps Bhagirathi dam project).
While the Bhagirathi river is a major source of the Ganges in Uttarakhand and the government's decision has also been influenced by religious sentiments attached to the river as well as the demand for unbroken flow.
Shinde, minister of state for environment and forests Jairam Ramesh and finance minister Pranab Mukherjee together announced the decision to wind up the controversial project following intervention of Congress top brass, including prime minister Manmohan Singh.
They said the decision has been taken in view of the adverse environmental, financial and social impact of the project.
"So far NTPC has incurred about Rs600 crore on the project and has placed order worth Rs2,000 crore for the equipment. We have got an assurance from the government that NTPC would be duly compensated," Shinde said.
