The Power ministry will soon put up a proposal to the Union Cabinet for compensating state-run NTPC, whose upcoming 600-MW hydro-power project at Loharinag Pala in Uttarakhand was scrapped recently by the government over environmental issues.
The company is estimated to have committed around Rs 2,000 crore on the project, which has been rendered futile on account of the project being scrapped. “We have to prepare a proposal for the approval of the Cabinet. The government has assured us that all the expenditure incurred by the company on the project would be compensated,” the Union power minister, Mr Sushilkumar Shinde, said. On Friday last week, a group of ministers (GoM) had decided to scrap the hydel project on the Bhagirathi river in view of religious sentiments and environmental concerns.