CCEA approves Rs 2,614.51-crore hydropower project in Himachal

Representative image (Source: AP)

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on January 4 approved Rs 2,614.51 crore to build a 382 MW hydroelectric project (HEP) in Himachal Pradesh.

The plant, also known as the Sunni Dam HEP, will be a run of river project on the Sutlej river in Shimla and Mandi districts of Himachal Pradesh. The project cost of Rs 2,614 crore will include hard cost of Rs 2,246.40 crore, interest during construction (IDC) and financing charges (FC) of Rs 358.96 crore and Rs 9.15 crore respectively. It also includes Rs 13.80 crore as budgetary support from the Government of India for cost of enabling infrastructure, the power ministry said in a statement on January 4.

The central government has been prioritising the development of hydro projects to meet the growing demand for electricity and to offset the seasonality of wind and solar power. Hydro power is also the biggest source of income for Himachal Pradesh since it has five major rivers and it provides electricity to other states as well.

The Sunni Dam HEP is expected to add 1382 million units of green energy to the grid and is likely to reduce 1.1 million tonnes of Co2 emissions annually, as per the project report seen by Moneycontrol.

The project will involve building a 71-metre-high concrete gravity dam from the river bed level. It will have a low-level spillway having six bays fitted with radial gates. "The spillway has been designed to pass flood corresponding to probable maximum flood of 15473 cumec. The dam would provide a gross pondage of 82.5 million cubic metre (MCM) and live storage of 7.9 MCM. The length and width of the dam at top shall be 178 m and 8.0m respectively. The dam will be divided in 12 blocks," read the report prepared by SJVN. SJVN is implementing the project.

On December 27, 2022, the government signed a memorandum of understanding (MoU) with the Defence Research and Development Organisation (DRDO) of the defence ministry for implementation of an early warning system for vulnerable hydro projects or power stations.

Cost variations due to quantity changes (including additions/ alterations/ extra items) and time overruns due to the developer shall be capped at 10 percent of the sanctioned cost, the ministry said.

“Keeping in view the aims and objectives of Atmanirbhar Bharat Abhiyan, the present proposal for setting up of 382 MW Sunni Dam HEP by SJVN shall provide various benefits to local suppliers/ local enterprises/ MSMEs and shall encourage entrepreneurship opportunities within the country besides promoting employment and socio-economic development of the region. The implementation of the project shall generate direct and indirect employment to about 4000 persons during peak construction of the project,” the ministry said.