Shimla: Himachal Pradesh Cabinet met here today and approved change in elevations and capacity enhancement in 23 small hydro electric projects. It also agreed to charge the Free Power Royalty etc. in accordance with the power policy where the capacity enhancement is more than 20 percent.
Cabinet presided by Chief Minister Prem Kumar Dhumal also decided to allow IPPs to dispose off the power from the Project(s) after allowing royalty in the shape of free power to the state government in any manner they like in accordance with the provisions contained in the Electricity Act, 2003 and the rules and regulations made there under. In case of projects where capacity enhancement has already been approved, the IPP, who has already signed the implementation agreements with the different clause of mode of sale of power, will be at liberty to sign open access clause hereafter subject to above conditions.
It also decided to sell free power share in Karchham-Wangtoo Hydro Electric Project through Power Trading Corporation till the project starts regular generation. It approved enhancement of borrowing limit of HP State Electricity Board Limited from Rs 3000 crore to Rs 4,000 crore.