New Delhi (NVI): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today approved investment of Rs 1,810.56 crore for 210 MW Luhri Stage-I Hydro Electric Project, located on river Satluj, which is situated in Shimla and Kullu districts of Himachal Pradesh.
This project will generate 758.20 million units of electricity annually, according to a CCEA statement.
The project is being implemented by Satluj Jal Vidyut Nigam Limited (SJVNL) on Build-Own-Operate-Maintain (BOOM) basis with active support from the Central and state governments.
It will be commissioned within a span of 62 months, Union Minister Prakash Javadekar announced.
The MoU for this project was signed with the Himachal Pradesh government during Rising Himachal, Global Investor Meet, which was inaugurated by PM Modi on November 7, 2019.
Furthermore, Centre is also supporting this project by providing grants of Rs 66.19 crore for enabling infrastructure which has helped in reducing in power tariff.
In addition to this, the power generated from the Hydro Power Project will help in providing Grid stability and will improve the power supply position. Besides adding valuable renewable energy to the Grid, the project would also lead to reduction of 6.1 lakh Tons of carbon dioxide from environment annually, thus contributing to improvement in air quality.
The construction activities of the project will result in direct & indirect employment to around 2000 persons and will contribute to overall socio-economic development of the state.
Himachal Pradesh will also benefit with free power worth around Rs 1,140 crore from Luhri Stage-I Hydro Electric Project, during project life cycle of 40 years.
The Project Affected Families will be provided with 100 units of free electricity per month for ten years.