The Cabinet Committee on Economic Affairs approved the constitution of an Empowered Committee headed by the ministry of power comprising senior level representatives from concerned Ministries to finalize the financial compensation, measures for maintaining the fragile eco geological balance in the discontinued project site of Loharinag Pala in Uttarakhand. An agency would be identified to implement environmental safety measures and rejuvenate losses of ecology in and around the project site.

The Ministry of Power will bear the expenses for compensation to NTPC and also for safety measures and as per the recommendations of the Empowered Committee.

The National Ganga River Basin Authority decided in its meeting in November, 2010 to discontinue all under construction hydro electric projects in the upper riches of the Bhagirathi in view of the necessity of maintaining aviral dhara (continuous flow) in the Bhagirathi. 135 km stretch towards Gomukh and Uttarkashi is a declared eco-sensitive zone. With the decision of NGRBA, Loharinag Pala (600 MW) hydro electric project, which was being implemented by NTPC was discontinued.

The project site falling under the eco-sensitive zone will have necessary protection measures in terms of ecology and compensation to NTPC will ensure that the country’s largest public sector thermal power generator does not suffer any financial loss because of discontinuance of the project which it started implementing after obtaining all statutory clearances.