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CCEA clears Parbati hydel project
Our Bureau
New Delhi
,
Oct 21
THE Cabinet Committee on Economic Affairs (CCEA) today approved the setting up of the Parbati Hydro Electric Power Project Stage III in Himachal Pradesh at an estimated cost of Rs 2,304.56 crore.
It has also approved the restructuring of Praaga Tools, a subsidiary of HMT.
Briefing newspersons, the Finance Minister, Mr P. Chidambaram, said that the power project cost also includes foreign contribution of Rs 203.42 crore at May 2005 price level. "The project will be set up with an equity contribution of Rs 100 crore to be made by National Hydro Power Corporation from its internal resources," he said.
The power project (520 MW) is the run of the river scheme on River Sainj in Kullu district in Himchal Pradesh. The project is to be completed over five years and help reduce power shortage in Northern India.
On the rehabilitation of Praaga Tools, the Minister said, "As approved by the CCEA, the Government will convert Rs 82.39 crore of loan into equity. It will also waive Rs 94.73 crore of accrued interest."
The company will sell part of its land and realise Rs 17.66 crore to pay off its statutory dues. The company, which is before Board for Industrial and Financial Reconstruction (BIFR), will eventually be merged with HMT.
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