The Cabinet Committee on Economic Affairs has approved the investment of Rs.1810.56 crore for 210 MW Luhri Stage-I Hydro Electric Project located on river Satluj in Shimla and Kullu districts of Himachal Pradesh. This project will generate 758.20 million units of electricity annually.
It is being implemented by Satluj Jal Vidyut Nigam Limited on Build-Own-Operate-Maintain (BOOM) basis with active support from the Central Government and the State Government. The MoU was signed with the Government of Himachal Pradesh during Rising Himachal, Global Investor Meet. The Centre is providing a grant of Rs.66.19 crore for enabling infrastructure.
The Luhri Stage-I Hydro Electric Project shall be commissioned in 62 months. The power generated from the project will help in providing grid stability and improve the power supply position. Besides adding valuable renewable energy to the grid, the project will also lead to a reduction of 6.1 lakh tonnes of carbon dioxide from the environment annually, thus contributing to an improvement in air quality.
The construction activities of the project will result in direct and indirect employment to around 2000 persons and contribute to the overall socio-economic development of the State. Further, Himachal Pradesh will benefit with free power worth around Rs. 1140 crore from Luhri Stage-I Hydro Electric Project, during project lifecycle of 40 years. The families affected by the project will be provided with 100 units of free electricity per month for ten years.