"The final decision whether NTPC-owned Loharinag Pala will be scrapped or allowed to continue will be decided at the meeting, but on my part, I would like to assure that the state government will be adequately compensated if needed," said Union Environment Minister Jairam Ramesh.
However, he did not elaborate on the details of the proposed compensation. The issue would be discussed at a meeting headed by Finance Minister Pranab Mukherjee and attended by Power Minister Sushil Kumar Shinde and Ramesh besides other senior officials concerned.
The meeting would review the study of an expert panel comprising members from the Central Water Commission (CWC), Environment ministry, IIT and NTPC on the possible environmental consequences of abandoning the project midway.
Work on the Loharinag-Pala dam had commenced in 2005 at an investment of Rs 2,200 crore, but it was suspended last year by the Environment ministry following concerns raised by the green lobby and locals that the free flowing character of Bhagirathi river has almost come to a halt due to the project.
The government has already scrapped two proposed hydel projects on Bhagirathi river to ensure its free flow. The Bhaironghati project was expected to generate 381 MW of power, while the Pala-Maneri project's proposed capacity was 480 MW. The Uttarakhand government has been demanding that the hill state should be compensated with 2,000 MW of free power in lieu of scrapping of hydel projects.