Himachal govt cuts down lease period of power projects to 40 years, free power share increased
SHIMLA: In a major policy change, the Himachal Pradesh government has cut down the period of land lease to all hydro-power developers from 99 years to 40 years and also decided to raise the royalty from the power from 12 per cent to 15 per cent.
The state cabinet which met here on Tuesday granted approval for amendment in the ‘Swaran Jayanti Energy Policy’. Chief Minister Sukhwinder Singh Sukhu presided over the meeting.
The royalty share will be 15 per cent for the first 12 years, 20 per cent for the next 18 years, and 30 per cent for the remaining 10-year period.
“Thereafter, the project shall revert back to the State Government free of cost and free from all encumbrances and liabilities. However, the royalty payable to the State for an extended period will not be less than 50 percent”, said a government spokesman.
The cabinet decided to withdraw the relaxation given for staggered free power royalty in favour of SJVNL and NHPC for 210 MW Luhri Stage-I, 66 MW Dhaulasidh, 382 MW Sunni Dam, and 500 MW Dugar Hydro Electric Projects with immediate effect.
The Cabinet decided to rationalize the tariff of water cess to be charged from the Hydel Power Projects.
This was after some of the power developers raised their objections to the state government’s move to levy water cess on the power projects and asked for a review of the tariffs.
The cabinet gave its approval to enhance the financial assistance from Rs 65,000 to Rs 2 lakh under Himachal Pradesh Widow Remarriage Scheme. In another decision, the cabinet also gave its approval to enhance the support price of apple, mango, and citrus fruits being procured under the Market Intervention Scheme for the year 2023-24 in the
State.
Henceforth, the support price of apple and mango will be Rs 12 per kg instead of Rs 10.50. Additionally, the support price of ‘kinnow’, ‘malta’, and orange has been increased to Rs 12 per kg from Rs 9.50, whereas the support price of ‘galgal’ and lemon has been enhanced to Rs.10 from Rs 8 per kg.
