Himachal's Energy Revamp: Hydro Project Overhaul and Employment Reforms

The Himachal Pradesh Cabinet has cancelled numerous stalled hydro projects and plans to re-advertise them. Reforms include a uniform power royalty and updates to the Compassionate Employment Policy. Additionally, measures for gender equality in work settings and development plans for a Medical Device Park were also announced.


Devdiscourse News Desk | Shimla | Updated: 30-07-2025 20:03 IST | Created: 30-07-2025 20:03 IST
Himachal's Energy Revamp: Hydro Project Overhaul and Employment Reforms
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The Himachal Pradesh Cabinet has taken decisive action to revamp its hydroelectric project landscape, announcing the cancellation of 172 stalled small hydro projects under HIMURJA that were below 5 MW in capacity. As construction on these projects had been halted for a prolonged period, the state plans to re-advertise them.

Chief Minister Sukhvinder Singh Sukhu led the meeting where these reforms were approved. In a move aimed at boosting the local economy, the state decided to implement a uniform free power royalty of 12%, with an additional 1% dedicated to the Local Area Development Fund, for future hydro projects up to 5 MW.

The Cabinet also announced policy updates, including enhancements to the Compassionate Employment Policy, prioritizing job placements for widows and parentless applicants. Efforts to promote gender equality in commercial settings by allowing women to work night shifts were also highlighted. Additionally, steps are being taken to develop a Medical Device Park in Nalagarh, signifying a broader push for economic growth in the region.

(With inputs from agencies.)

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