Loharnag_ProjectsMonitorNTPC’s tale of woes over Loharinag Pala hydro power project refuses to die down easily. While NTPC is facing pressure from its contractors to settle its liabilities, its request for compensation for stopping the project midway has fallen on deaf years. According to NTPC, the government owes Rs 536.3 crore as compensation for abandoning the project. NTPC has now requested the Ministry of Power for formation of a ‘Settlement Commission’ to resolve the issue and release the payment to the contractors. NTPC has also requested the Ministry to convene meeting of the Settlement Committee to consider Sub-group’s recommendations of proposed reimbursement of Rs. 32.27 crore as a payment for cost of the land.

NTPC’s 150 MW x 4 Loharinag Pala Hydro Power Project was a run-of-the-river hydroelectricity project planned at an estimated cost of Rs 2,895 crore. The project was located on the river Bhagirathi, the headstream of the Ganges River at Loharinag Pala in Uttarakhand. NTPC had awarded the main project construction contracts and construction was started in 2006. However, work had to be stopped in 2009 due to strong protests by environmentalists. The project was officially scrapped in 2010.


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  1. […] NTPC is racing against time to complete Koldam Hydro Power project in Himachal Pradesh as the Supreme Court approval for diversion of 124.054 ha of land under Majathal Wildlife has not yet been received. Without the SC order, NTPC will not be able to commence dam impounding at the site. It may be remembered here that the project was stuck up as the issue of diversion proposal of the project area falling in the Majathal Wildlife Sanctuary has remained unresolved. However, things started moving for NTPC when the standing committee of NBWL recommended the proposal for diversion of 124.054 ha forest land under Majathal sanctuary in July. […]

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