GoM decides to scrap NTPC hydel project on Bhagirathi river

 Keeping religious sentiments and environmental concerns in view, a Group of Ministers (GoM) today scrapped the NTPC's controversial 600 MW Loharinag Pala hydel project on Bhagirathi river in Uttarakhand.

Headed by Finance Minister Pranab Mukherjee, the GoM in a meeting made a detailed re-examination of the project and recommended that the hydro-power dam, the work on which had been under suspension for sometime, should be scrapped.

"A technical panel would be set up to recommend specific safeguard measures to be undertaken to protect the environment and to maintain the fragile eco-geological balance in the area," said Union Power Minister Sushilkumar Shinde, who is one of the members of the GoM.

The fate of the project had been hanging in balance for the last few years with the government doing a flip-flop -- first deciding to suspend the work and then partially resuming construction citing huge financial cost given that it had already incurred Rs 700 crore on the project.

Two projects on Bhagirathi -- 480 MW Pala Maneri and 381 MW Bhairon Ghati hydel projects proposed by the state government have already been scrapped by the GoM.

Shinde said that in view of environmental concerns and after Prime Minister Manmohan Singh asked the GoM to revisit the issue, it decided to do away with the project on Bhagirathi river, a key tributary of the Ganga.

Environment Minister Jairam Ramesh said, "earlier decision (to resume work) was taken reluctantly and after the GoM revisited the decision, it finally decided to scrap the proposed dam on the river to ensure its free flow."

A large number of religious leaders had also been protesting against the proposed dam, claiming that it will threaten the existence of the river and block free flow of Ganga, which is considered holy by the Hindus.