Himachal cabinet cancels 172 stalled hydroelectric projects to streamline energy development

In a major decision, the Himachal Pradesh cabinet, led by Chief Minister Sukhvinder Singh Sukhu, has cancelled 172 small hydroelectric projects that had been stalled for more than 20 years. These projects were earlier approved by HIMURJA, the state's agency for renewable energy. However, the companies that received the projects failed to start work even after taking multiple time extensions. As a result, the government has decided to cancel their approvals and re-advertise these projects.

HIMURJA mainly handles power projects up to 5 megawatts (MW). The cabinet also made a new rule for future small hydro projects—a uniform free power royalty of 12%, plus an extra 1% for local area development, will now be charged on all such projects. This change is meant to bring consistency in how new projects are allotted and operated.

Additionally, the cabinet decided to cancel 22 larger hydro projects (above 5 MW), where implementation agreements were not signed. These projects were allotted by the Directorate of Energy. For the remaining pending projects, the state has given companies time until August 5 to respond to show-cause notices issued earlier.

To recover the upfront fees paid for some projects, the cabinet also agreed to form a committee that will negotiate with 14 companies for an out-of-court settlement. The companies may get back their principal amount without interest.

Old hydro projects cancelled, new rules for small power projects introduced

The government wants to restart work on clean energy but with a new approach. By cancelling these old, inactive projects, they hope to clear the way for serious investors and developers who are ready to begin construction.

The cabinet also introduced other reforms related to employment, safety, and education. One key decision was to update the Compassionate Employment Policy, which helps family members of government employees who die during service.

Previously, the annual income limit for eligibility under this scheme was ₹2.5 lakh. This has now been raised to ₹3 lakh per family. Also, widows and parentless individuals under 45 years of age will be given first priority. If jobs under the 5% quota are not available, the cabinet has allowed a one-time relaxation so that eligible people can still be hired.

ALSO READ: Salt therapy gains popularity as a wellness trend, but experts urge caution

ALSO READ: Subtle signs of anxiety you might be missing in everyday life

Cabinet announces changes to job policy, women’s safety, and nursing education

In a step towards gender equality, the cabinet approved a plan to allow women to work night shifts (from 7 PM to 7 AM) in shops and commercial establishments. At the same time, all women employees in such workplaces will get maternity benefits as per the Maternity Benefit Act of 1961.

The cabinet also made changes to mining rules under the Himachal Pradesh Minor Minerals (Concession) and Minerals Act, 2015. From now on, contractors working on road cutting and dam maintenance can reuse the material they dig up. Any extra material left behind must be sold through auction, following the proper procedure.

For boosting healthcare education, the cabinet approved a new BSc Nursing College at Dr Rajendra Prasad Government Medical College in Kangra (Tanda), with 60 new seats. It also agreed to increase seats from 60 to 100 at Sister Nivedita Government Nursing College in Shimla. A total of 27 new staff positions will be created for the new Kangra college.

The cabinet also took steps to develop a 300-acre Medical Device Park in Nalagarh. A sub-committee under Industries Minister Harshwardhan Chauhan will look into the project and submit its report in two months.

To improve air connectivity, the cabinet extended its agreement with Alliance Air for flights between Shimla and Dharamshala. It also gave a one-year extension for acquiring land needed for the expansion of Kangra Airport. The extension is valid up to August 16, 2026, under the Land Acquisition Act.

Lastly, the cabinet approved a new development plan for Dhaulakuan Majra Planning Area in Sirmaur district. This is part of the state's efforts to improve infrastructure and urban planning.
The Himachal Pradesh government has taken a bold step by cancelling long-pending hydro projects and bringing in new rules to promote clean energy, better job policies, and gender-friendly workplaces. With added focus on nursing education and infrastructure planning, the state aims to build a stronger, more efficient system for public services and economic growth.