The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the investment of Rs 1,810.56 crore for 210 MW Luhri Stage-I Hydro Electric Project located on river Satluj in Shimla and Kullu districts of the Himalayan State of Himachal Pradesh. This project will generate 758.20 million units of electricity annually.
This project is being implemented by Satluj Jal Vidyut Nigam Limited (SJVNL) on Build-Own-Operate-Maintain (BOOM) basis. The MoU for this project was signed with the Government of Himachal Pradesh in November 2019. The Government of India is also supporting this project by providing grants of Rs 66.19 crore for enabling infrastructure, helping in reducing in power tariff. The government’s press release states that the project will 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. Besides adding valuable renewable energy to the grid, the project is expected to lead to reduction of 6.1 lakh tonnes of carbon dioxide from the environment annually.
The official source’s outlook is that the construction activities of the project result in direct and indirect employment to around 2,000 persons. Further, Himachal Pradesh will benefit with free power worth around Rs 1,140 crore during the project life cycle of 40 years. The project-affected families will be provided with 100 units of free electricity per month for 10 years.