Govt Move to Reclaim 500 MW Dugar Hydel Project from NHPC Put on Hold Amid Court Case
Shimla, May 30:
The Himachal Pradesh government’s plan to take back the 500 MW Dugar Hydroelectric Project from NHPC has been paused, as the matter is currently under judicial scrutiny in the High Court of Himachal Pradesh.
As per a letter from the Directorate of Energy, the Council of Ministers, in its meeting held on April 5, 2025, had approved two key decisions:
1. The Dugar Hydroelectric Project, initially allotted to NHPC, may be taken back.
2. An independent evaluator may be appointed to assess the actual expenditure incurred by NHPC on the project.
However, NHPC, in its official communication to the state government, has requested that the decision be kept in abeyance until the High Court gives its ruling.
Adding weight to the government's decision is the fact that there has been no physical work progress at the project site ever since the project was allotted to NHPC. Despite being handed over years ago, NHPC has failed to initiate any substantial groundwork or infrastructure development on site, sources confirmed.
The Dugar project, located in the remote Lahaul-Spiti and Chamba region, is seen as a vital asset in Himachal’s green energy roadmap. The state's move to take it back is being seen as a push for accountability and faster execution of delayed hydro projects.
For now, the file is in limbo—waiting on the High Court's decision before any further action can be taken.
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