Chamera Ii Project Fate Uncertain

Environmental clearance withdrawn

The fate of the ambitious 300 mega watts (mw) Chamera Stage II hydro-electric project in Himachal Pradesh hangs in the balance following the Union environment and forests ministrys decision to withdraw the environmental clearance accorded to the project on March 6, 1985.

The environment ministry has notified the National Hydroelectric Power Corporation (NHPC) that the clearance stands withdrawn since no construction work has been undertaken at the site over the past 12 years.

Power ministry sources said NHPC could not undertake any worthwhile construction at the site since it has still not received the Public Investment Board (PIB) clearance for the project. The PIB was expected to clear the project at its forthcoming meeting on July 3.

 

Himachal Pradesh Chief Minister Veer Bhadra Singh is reportedly extremely unhappy about the environment ministrys move and may meet the Prime Minister to discuss the issue.

The state government has been eagerly awaiting the implementation of the project, which could ease the power shortage in northern India. The Union power ministry expects the northern region to face acute peaking power shortages from the beginning of the 10th Plan, especially since the Chamera Stage II project is the only hydel project in north India which is close to financial closure. The project had been experiencing abnormal delays because of opposition by the Planning Commission and finance ministry to the high project cost, estimated at Rs 2,350 crore. However, the power ministry was keen that the project should be taken up for execution in the ninth Plan (1997-2002).

The ministry felt that since the project had already obtained most of the required clearances, it could be completed during the ninth Plan period itself.

Moreover, the project execution was expected to be easy as most of the infrastructure facilities are already available.

Earlier, Chief Minister Veer Bhadra Singh had even asked the Centre to return the project to the state for implementation by the private sector in case it did not have enough resources to see it through.

The Chamera Stage II project was transferred to the Centre for execution by the Himachal Pradesh government in 1987. Initially, the project was to be implemented in collaboration with Canada, which was associated with the execution of the 540 mw first stage. However, in 1992, the arrangements fell through as the Canadian financing agency, EDC, backed out of providing a loan for the project. Subsequently, the Indian government decided to seek 100 per cent financing arrangements.

Only two proposals were received in 1993, of which the Indo-Canadian Hydro Consor- tiums proposal was shortlisted. The project is located near Chamba town and is based on the Ravi river, which has an identified hydel potential of 2,000 mw

. NHPC has already set up two projects on this river the 198 mw Baira Siul and the 540 mw Chamera Stage I.

Another major project on the river, the 600 mw Thein Dam, has also been taken up for execution by the Punjab government.